Cyber Security Insurance
Perhaps your business is not a "technology business" and cyber liability doesn't seem too relevant to your daily operations. Think again. If you use technology to run your business—like email, the web, or your own network—then you do have Cyber Liability risk.
If your company stores information from customers or patients such as medical records, credit card numbers, bank account information, social security numbers, or any personally identifiable information (PII), then you should know these things are a target for hackers.
Further, if all of your employees save data on the same network, your entire operation could be at risk should one person accidentally open up an attachment in email that is laced with a virus. You may not have considered how you might be liable if one of your employees accidentally introduced a virus into another business' network, or transmitted libel. What if hackers gained access to your customer database and got social security or credit card numbers?
Data breaches, cyber extortion, funds transfer loss, data loss/destruction, business interruption, and computer fraud are some of the things covered by Cyber Security Insurance.
A data breach could result in numerous liabilities, among them being these:
- Loss, theft, unauthorized disclosure of your customer's information
- Denial of service to a third party's computer system
- Damage to a third party's data stored in your computer system
- Delivery of malicious code to a third party's computer system
Not reacting to a breach rapidly or appropriately may also damage the reputation of your company and the trust your customers put in you.
Having cyber security insurance can help to mitigate costs of notifying those impacted, public relations, accessing professional assistance for help complying with applicable laws and regulations, and avoiding steep penalties and fines by addressing regulations and laws immediately after a data breach. In most states, this coverage will also help cover liability and legal defense costs if your business is sued resulting from a data breach.
Cyber Security Insurance FAQs
Typically Business Owner's Insurance, along with General Commercial Liability and Property Insurance policies, exclude cyber risks from their terms, necessitating a separate Cyber Security Insurance Policy to ensure that your business stays protected. While different insurers may have wide variances in price and exclusions for cyber security insurance, strategic business owners should not let this deter them. Cyber security coverage is vital in developing a comprehensive strategy for risk management and response.
The 2012 Data Breach Investigations Report revealed that 71% of cyber attacks are actually targeting small businesses because they are easy targets without any security structure in place.
Your Mountcastle agent will help you conduct a risk assessment and impact analysis, taking into consideration all assets, including intellectual property and customer data, and will categorize them as high or low risk to help you determine what policy will provide the coverage you need.