Each year, the threat of hackers stealing your customer’s information, disabling your website, or interfering with your business is continually increasing. If you are a small or mid-sized organization that uses electronic systems, the need for skillfully underwritten cyber insurance and liability coverage has never been greater.
Cyber insurance provides your company with expert legal services and technical support should your business have a data security breach. These experts include forensics, legal advice, and many other trained professionals. Risk management tools are also available that can give you industry-specific guidance and decrease the vulnerability of your business to a cyber attack.
We offer cyber protection packages that can protect your business from the following:
- Digital Crime
- Electronic Transfer of Funds
- Telephone Toll Fraud
- Cyber Extortion
- Deceptive Transfer
- Breach Liability
- Privacy Liability
- Payment Card Industry
- Website Media Liability
- Breach Rectification
- Business Interruption
- Digital Asset Loss
Common Misconceptions About Cyber Insurance
Myth: “I am not a target for hackers”
Unfortunately, human error is the cause of many data breaches. Whether a computer is stolen, left in a cab, or a user does not utilize proper security protocols, the potential for data security breach is always present. Protecting your business against cyber attacks is essential. The National Cyber Security Alliance found that one in five small businesses fall victim to cyber crime each year, and roughly 60 percent of those businesses go out of business within six months. A study by PwC US found that security incidents have increased 66 percent year over year since 2009 with an average of 117,339 cyberattacks and security incidents occurring per day. A study by Trustwave found that 98% of all computer applications are at risk of being hacked.
Myth: “We do not sell goods or services online so we are not a cyber risk.”
If your website captures and/or stores customer and vendor data, than you are at risk of a cyber attack. Cyber policies are designed to address the risk of using technology, computers and internet connectivity in daily business including capturing, storing and using data every day.
Myth: “We use vendors for all our IT services.”
Based on current data regulations, if your company collects data and records from clients, than you are held responsible if a data breach occurs. Legal liability cannot be transferred by contract, therefore, if a point of sale device (i.e. cash register) is compromised, the obligation to notify impacted parties will fall on the business owner, not the vendor who processes or stores payment information. Indemnification agreements typically limit recourse to the value of the contract. An average data breach involving personal financial records could cost a firm hundreds of thousands of dollars, well in excess of the value of most vendor contracts.
Myth: “We have top notch security in place.”
There is no such thing as “perfect security.” Agencies including the Central Intelligence Agency, White House and National Security Agency have been compromised by inside and outside parties, proving that no security solution is impenetrable. Cyber insurance augments even top notch security solutions.
Myth: “Our general liability policy will cover the loss.”
General liability (GL) policies lack the flexibility to address new and emerging cyber perils. Several significant court decisions have ruled that a GL policy does not cover data privacy breach losses and the Insurance Services Organization released a data loss liability exclusion for GL policies in 2014.
Myth: “I don’t collect a lot of data.”
Every business with employees and/or vendors collects and stores private information including addresses, health information, marital status, bank account information, payment history, human resources records, etc. Additionally, if you sell goods/services, every financial transaction carries protected information including credit card and bank transfer information. The mishandling of such information can lead to a liability or public relations challenge.
Source: Victor O. Schinnerer & Co., Inc.
If you would like to learn more about Cyber Insurance, please feel free to contact us at any time. If you are ready to take the next step in securing your business, take a few minutes to fill out our online Cyber Insurance Quote Form.