Staffing Exposures Privacy and Cyber Liability Insurance
The vast majority of staffing companies keep private and personal information on their computer systems that easily identify customers or employees. If this sensitive data falls into the wrong hands via a network security breach, it can lead to fraud, identity theft or similar cyber crimes. These security breaches can happen either accidentally or through employee misconduct.
Common RisksHackers, Attackers and Intruders
These terms are applied to people who seek to exploit weaknesses in software and computer systems for their personal gain. Although their intentions are sometimes benign, their actions are typically in violation of the intended use of the systems that they are exploiting.
The intensified use of social media and interactive websites is another large risk in which divulging private information and slander can be exposed accidentally or intentionally by employees. Staffing companies with posting capabilities allow individuals to converse with one another quickly via the internet. Should one of your employees post defamatory or private information about a client, another employee or the company, this could be devastating to your business.
Privacy and Cyber Liability InsurancePrivacy Insurance policies are incredibly important because traditional insurance does not cover losses via the World Wide Web. If you are a store owner and someone breaks in and physically damages several of your computers, your property coverage will cover the damages. However, if someone from a distant location manipulates your firewall protection and gains remote access to your server and then deletes, alters or steals data pertinent to running your staffing business, you are not covered under general liability or property damage insurance.
Insurance cant prevent a security breach from occurring, but it can ease some of the financial burden. The primary components of Technology Related Coverage or Cyber Liability policies are:
- Privacy Liability: coverage for liability arising out of ones right to privacy
- Network Security: coverage for liability arising from security breaches
- Technology E&O: coverage for liability arising from services provided to others
- Media/Content: coverage for liability arising out of the use/dissemination of media
Tips on Managing Cyber Liability Risk
- Develop and implement an appropriate cyber security policy
- Create a formal process to update software, firewalls and anti-virus programs
- Safeguard mobile devices that hold sensitive personal data with encryption codes
- Safeguard personal information within the workplace, segregating pay information and personal details on a separate part of the network and restrict access to staff on a privilege basis
- Implement regular staff training on security procedures
- Have a crisis management plan in place
- Investigate a companys security practices before outsourcing any business functions, such as payroll, web hosting or data processing
- Have an insurance policy in place to cover this type of liability
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