Cyber Liability Insurance
Cyber Liability Insurance Information
Privacy & Security Liability Insurance Information
What is Privacy & Security liability insurance?
Sensitive customer and employee data stored within company servers, in the cloud, or in paper format is vulnerable to attacks from hackers and other cyber criminals. Most people think only large corporations are in danger of cyber-crime attacks. But, all businesses are at risk whether they use computers or not.
Is Your Information at Risk?
- What kind of data do you store? Customer Data? Employee Data?
- Where is this confidential data stored? How is it protected? How long is it stored for?
- Is it backed up? If so, how is the backup secured?
- Who has access to this data?
- Can it be downloaded to an unencrypted device (Smart phone, USB Drive)?
- Do you share data with any third party vendors (ie: payroll company, IT provider) or business associates? Have they agreed to indemnify you in the event of a breach?
- Are Laptops Encrypted (the process of encoding messages or information in such a way that only authorized parties can read it)?
What Constitutes a Data Breach?
Negligence: Easily the most relatable — the laptop stolen from the business owner’s car, or sensitive files being thrown into a dumpster by a well-intended office assistant.
Rogue Employees: It’s a fact of life that all employers have to plan for — a disgruntled employee wants revenge and with access to secure systems, can be a potential risk. Even the most advanced network security system is vulnerable to an employee who has the passwords. Private information can be sold online for substantial sums. Internal theft accounted for 11% of all breaches in 2013.
Business Associates – While you may have excellent security procedures, state-of-the-art encryption, and perfect employees, do you share your data with any third parties? Does your customer data flow through any of your vendors’ systems? Does your payroll firm practice safe data management? Is your email service ‘in the cloud’ and secure? Do your contracts with business associates indemnify them for any breaches? Many business associate agreements do not include indemnification protection in the event of a breach.
Hackers: Yes, businesses of all sizes are vulnerable to hackers. Whether in the form of a virus, an exploit or other automated attack, there is a constant threat of breach by those who seek to gain from your client’s potential vulnerability. If hackers are able to break into the FBI and other highly secure networks, your network would be a walk in the park for a determined hacker. Many small business networks are breached by automated malicious viruses, that are designed to steal data from several sources at once, which means that a business doesn’t have to be specifically targeted by a hacking group to be affected.
What are the benefits of cyber liability insurance?
More than one-third of businesses experience a data breach each year. If a similar event happened at your business, would you be able to pay for the resulting damages?
Many privacy and security liability policies cover a variety of expenses associated with a breach:
- Stolen data retrieval
- Reimbursement of fraudulent charges
- Notification costs to the affected individuals
- Identity protection services for affected individuals at risk of identity theft
- Damage control for your business’ reputation and lost income
- Legal fees associated with the attack
- And other cleanup efforts
A general liability policy often excludes losses incurred because of the Internet. A privacy & security liability policy can fill in that gap. It may be the difference between closing your business and making a comeback.
Get started today!
We can evaluate your business’s needs and find a policy that offers the best possible protection against cyber-crime.
Privacy and Security Statistics!
The odds of being struck by lightning are 1 in 960,000; the odds of being affected by a data breach are 1 in 4.
Only 4% of breaches were secure breaches (where encryption was used).
Types of breaches: 74% identity theft, 13% financial access, 6% account access, 6% existential data, 1% nuisance.
If only 1,000 records were breached and no health care information was involved and no class action suit was expected the estimated cost of a breach would be $220,905. This includes incident investigation; notification costs; crisis management; regulatory fines/penalties. Cost per record $221. AND . . . What is the cost of the damage to your reputation?
Call us today for more information! 716.631.0190