NAVIGATING THE CYBER WEB
It is as commonplace as our morning coffee …….. a news story on breaches , and hacks , aka cybersecurity . But alas , these stories are “ Old news ” applying only to the high profile corporate networks ( Home Depot , Target , Anthem )… or are they ??…. and besides ….. my company “ can ’ t afford the insurance premium cost ”…….. but maybe , just maybe “ you can ’ t afford the loss ”……..
So what exactly is Cyber Liability and how could it affect me and my business ? Cyber liability is the risk posed by conducting business , over the Internet , over other networks or using electronic storage technology leading to data loss , i . e ., opening infected emails , unattended computers , stale security passwords , mobile devices containing confidential information , all of which can result in both “ first party ” and “ third party ” claims .
A “ first party ” cyber liability occurs when your own information is breached . For example , cyber extortion , cyber terrorism .
A “ third party ” cyber liability occurs when customer or partner information your organization has promised to keep safe is breached . This includes network security and employee privacy liability , electronic media liability . Ask yourself the following questions :
• Does your business use computers
• Does your business have a website
• Do you accept payment by credit card
• Do you maintain computerized employee records
If any of the above were answered “ yes ”, you not only need Cyber Liability Insurance , you are at risk . Cyber security breaches are one of the most serious issues facing businesses today . Not only can these breaches result in lost income and heavy fines , but worst of all you can lose the hard-earned trust of your customers .
Why Purchase Cyber Liability Insurance ?
You will be hacked ; it is not a matter of if , but when . Data breaches occur every day . While hacking incidents are the most recognizable and expensive cause of data loss , they are not the most common . It ’ s a startling fact - simple human error accounts for three out of four incidents .
4 IREM Chapter 99