Cyber Insurance – You Need It

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What is Cyber Insurance?
Cyber Insurance is insurance against personal data being compromised over the internet. This can occur via many ways, including a virus transmissions (typically from email or another form of access), malware, or unauthorized access like a hacker or a “bad employee”.  Any company that has a website and/or does business over the internet is potentially open to claims of cyber liability. Even an “innocent omission” made by an employee, while they are using email or posting to the web even while performing their assigned job, has the potential to bring a Cyber Liability claim against your company.

What does this mean to you as a Company?
As a company your client data is typically stored on the company’s server or even an individual manager’s computer. All it takes for a breach to occur is one of the above access breaches to find its way to the computer with your data on it. This could potentially give personally identifiable information such as credit cards info, banking, household and community info to someone with nefarious intentions. As a company, your network probably also has all of your employees’ private information including social security numbers, tax records and receipts, intellectual property and maybe even trade secrets. Identity theft could result and your company would be responsible. Any compromise of this information is enough to ruin the integrity of your system as well as your business reputation.

My Company has an up-to-date firewall and virus protection and my website is secure, I feel confident I don’t need this insurance.
This is a common misconception. The most common inadvertent access is an email with an attachment that got through the firewall and virus protection. The more sophisticated the firewall and virus protection the more sophisticated the attack can be.
If a commercial company has a website they have the liability of a publisher. Use of a person’s name or likeness on a website without their permission can result in a claim.  “Innocent omissions”  lead to the most trouble for your company. Many malicious attacks from hackers are started because they want to see how much trouble they can cause or how much info they can steal. A link on your page can be changed without your knowledge and redirected to an undesirable sight. No matter what the circumstance, your company still has the liability.

What does cyber insurance cover?
This kind of insurance is specific to your business needs but can include some or all of the items listed below.
• Network and data breach protection (Network Security and Privacy Liability)
• Electronic media liability including loss or damage to electronic data
• Loss of income or extra expenses incurred by a breach
• Cyber extortion losses
• Notification costs associated with compromised personally identifiable data
• Damage to your business reputation.

If you have a company and a website or network you need cyber insurance!


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