If you’re going to become a major player in the business world, you are going to have to rely on electronics and automated systems to increase productivity and efficiency. Credit card machines, online banking, and computer systems all help businesses run smoothly, but with the advantages also comes the disadvantages of vulnerability. As uses for computers became more versatile, hackers and evil doers around the globe have learned to harness their skills and tap into all the information to share via our electronic devices.
The computer has no doubt allowed business to grow larger than ever before but along with this success comes even greater risk for the data we are inputting and storing in our hard drives and databases. This risk of breach, defined by an event in which an individual name, social security number, drivers license number, medical record or financial record/credit/debit card, is potentially put at risk – either in electronic or paper format, is increasing on a daily basis.
A quote by Chris Boylan, a liability underwriter with Stuckey and Company in St. Louis, Missouri had this to say, “When people think of cyber liability they think of the big, bad computer virus software programmer sitting in a dark corner far, far away trying to swipe credit card info. But really, that is only a portion of the exposure out there,” but the truth is that most security breaches happen closer to home than you would think. Negligence by employees as well as mistakes can lead to breaches that could potentially cost your company millions.
The good thing is that you don’t have to be in this fight all by your lonesome. Boylan states that, “Cyber liability coverage is appearing across the marketplace in many forms. Typically, it is a monocline coverage form, but can also be added to various professional liability coverage via endorsement as well.” This is good news for any business looking to protect themselves from an attack.
A good plan will protect from a number of risks and losses such as, Privacy liability, Data breach, Cyber extortion, Regulatory expenses, Network damage, Identity theft, and Notification expense coverage. For a more in depth look stay tuned for our upcoming blog post which defines the many different types of cyber liability insurance coverage for your business.