Everyone has heard of the big data breaches recently. This is when someone hacks your system or server and steals your clients’ personal information. Unfortunately it is a virtual certainty, no pun intended. Yes, there is security that you can put in place to reduce the risk of a breach, but it will likely happen at some point. When it does, your company could be liable for the losses that occur as a result of that breach as well as expenses to monitor credit and other mitigation methods. Cyber liability insurance can help protect your company after a breach.
Having your data “in the cloud” is not automatic protection for you. Read your licensing agreement with any cloud product and you will see they make you responsible for a lot that can happen.
Cyber Insurance can provide coverage in the event of a data breach. It provides first-party and third-party liability coverage to companies when personal/confidential information is compromised and other cyber related events:
- Companies with access to private, confidential information about their customers or employees have a responsibility for keeping it safe
- Companies who have a web presence have emerging content exposures
- Companies who have a dependency on technology have emerging transactional exposures
Cyber Insurance is sometimes referred to as network security and privacy insurance
Who needs Cyber insurance?
- Companies who host, store, share or transmit proprietary & confidential data
- Companies who transact business and generate revenues from the Internet
- Companies whose business operations would be impacted by a service disruption
- Companies who outsource storage, processing or sharing of confidential information with third party service providers
- Companies who publish electronic content. Companies who have exposures to consumer Identity Theft, including remediation for notification costs
- Companies whose high profile increases the probability of extortion
- Does your Client host Personally Identifiable Information for Customers, and/or Employees? Do they have personally identifiable Healthcare information due to sponsoring a H&W Plan?
Consult your W.E. Davis Insurance professional to see if cyber insurance is appropriate for your business. Our insurance professionals can also help you evaluate your customer files to determine how much insurance you may need!