CYBER LIABILITIES
The Unseen Danger
Of Cyber Liabilities
D
oes a substantial portion of
your business operate utilizing
some form of technology?
Do you store customer and
business information on your
computers? How about your technicians
or employees? Do they use their phones
to help communicate important details
about work? Chances are, the answer to the
majority of these questions is a resounding
“Yes.” That shouldn’t be too much of a
surprise, especially considering how
quickly new technologies are coming out
which are disrupting the status quo and
making things easier for businesses. Every
one of us has been there at some point,
whether it’s storing purchase orders in a
database or utilizing software-as-a-service
(SaaS) solutions to solve problems at work.
Technology has made life easier in
innumerable ways. Unfortunately, nothing
comes easy without a price. When it comes
to technology, that price is a dramatically
increased liability pool. If you follow the
news, it would be hard to miss some of
the consequences of cyber-attacks and
cyber liabilities. It seems like every day a
company faces a huge breach, whether it’s
Target in 2013 (which affected 41 million
people and ended up costing the company
$18.5 million) or even Equifax in 2017.
According to a 2017 study sponsored by
IBM and conducted through the Ponemon
Institute, the average total cost of a data
breach in 2017 was $3.62 million. That is a
number which simply cannot be ignored.
There is a light at the end of the tunnel,
however. Cyber insurance coverage is
specifically designed to deal with data
breaches and cyber crimes from both a
regulatory and a civil liability standpoint.
Many business owners believe general
liability insurance can cover some of the
damage stemming from cyber incidents.
Unfortunately, that isn’t the case. Cyber
insurance will mitigate liability which
involves sensitive customer information and
help deal with the consequences of it.
HERE ARE A FEW EXAMPLES OF WHAT CYBER POLICIES COVER:
• Legal fees and expenses from civil or governmental entities
• Notification of customers (many regulations require the notification of
customers in the event of a data breach that involves personal information)
• Repair/replacement of damaged equipment and systems
• Data recovery from compromised units
• Restoration of customer identities
• Public relations (data breaches are often accompanied by a decreased brand
opinion)
• Business operations (to keep your business running while things are being fixed)
Do you think your business is adequately protected against cyber liabilities? Even
if you think it is, we recommend a thorough review to make sure. Cyber-attacks
are becoming more and more prevalent, increasing in frequency right along with
the technology that makes them possible. Do yourself and your business a favour
and make sure you are covered. It’s important to understand that insurance is just
one piece of a larger puzzle. Contact McFarlan Rowlands for your free cyber review
today and find out what steps you can take to protect yourself moving forward.
Phone: 888-734-8888 • www.mcfarlanrowlands.com
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