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Tag Archive for: cyberliability

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Corporate Risks and Cyber Criminals Lurking in the Cloud

Most of us are already aware of the benefits of cloud computing. But what many don’t realize is that cyber criminals are also harnessing the power of the cloud to gain unauthorized access to sensitive data.

Phishing scheme artists, for one, have learned to utilize the redundancy, scalability, and automation powers of the cloud to gain illegal access to bank accounts. This is easily accomplished by procuring cloud services through a website with an approved, though likely stolen credit card. This sets the stage for criminals to work their craft anonymously and make them even harder to catch.

What are the risks of cloud computing to a corporation?

There are many risks that a company faces from the use of cloud computing. Some of the major risks include disputes over ownership of data, records and assets. Risks can also include lost data, unavailability of information and malicious attacks. In addition, risks from shared access, authentication and authorization are broad.

Will a Commercial General Liability respond to data breaches or cloud computing risks?

No, your Commercial General Liability will not respond to claims that arise from data breaches or activities in the cloud. In order to protect against those types of risks, a company should consider the benefits of purchasing a cyberliability policy that is designed around your unique risks.

What can a company do to prevent these types of security breaches to your network?

The good news is that cloud providers are more diligent than ever in detecting unusual patterns of activity as they monitor how customers utilize the service. One very effective measure is the deployment of a dedicated antifraud team trained to recognize illicit activity from the start, such as the detection of a stolen credit card to procure cloud services. However, this does not mean you should relax your own security measures. Whether your data sits on another server, or is in the cloud, it is your corporate asset and you should take appropriate steps to protect that risk. Companies should be on the lookout for any security loopholes that allow easy access from unauthorized parties.

Working with a member of TechAssure Association can provide your organization with a range of insurance and risk management tools to help you manage your risks in the cloud. Contact a TechAssure Association member for more information on risk management services that can protect your corporate assets.

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Top Five Causes of Data Breaches and Why Firms Should Buy Cyberliability

Because of advances in technology, companies have been able to grow and expand like never before. On the downside, cyber threats lurk around every corner, from hackers corrupting systems and networks to criminals attempting data breaches.

Because of the nature of their business, technology companies are at an increased risk to these types of threats. Here are some of the top causes of data breach and what steps you can take to ensure your company’s information is safe.

  1. Credential Theft: Hacking puts all of your sensitive information at the fingertips of individuals trying to steal your company’s most important information. In a recent study, 76% of data breaches occurred because of weak credentials. Password protection is essential to preventing hackers from entering your company’s networking systems.
  2. Application Vulnerability: Hackers use back doors and SQL injection accounts for almost half of all data breaches. Web applications are most vulnerable to this type of attack.
  3. Data on the Move: This type of breach involves stolen or lost-in-transit devices such as laptops, storage devices, hard copy reports, and hand-held devices. Securing these items during travel can help ensure that your sensitive information does not fall into the wrong hands.
  4. Insider Breach: This type of security threat involves insider attacks. Employees who can access company information can easily transfer firm financials, passwords, network and security access, etc. When employees go rogue, it is important to have a secure plan in place to prevent loss of data or worse.
  5. Employee Error: Employee negligence can inadvertently expose your firm to data breach. Some of these instances may be unpreventable, but it is important to educate your employees on how they can prevent data breach by following certain system protocols and implementing criteria each day that can help close the gap.

Maintaining a comprehensive cyberliability insurance and risk management program can ensure that your information is protected and that you will have a plan of action for managing the aftermath. Protect yourself and your firm’s credibility with an insurance policy custom tailored to your specific requirements. A TechAssure Association member can help you customize a cyberliability program around your unique risk profile. Please contact us for more information.

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What is Cyberliability Insurance?

A Chubb Group survey recently found that 2 in 5 companies suffered from a computer security issue in a 12-month period, with the typical data breach costing $5.5 million in organizational costs for 2011. About a quarter of the respondents expect another major incident this year. Yet, 65 percent do not have the proper cyberliability insurance to respond to their exposures. In the study it finds that the most likely reason for the omission is that most people don’t know what cyberliability is and that insurance protection exists for it. Further, most buyers don’t understand that the insurance policies vary greatly from carrier to carrier.

Cyberliability refers to the risks that your company faces from the operation of your network. The exposures include first and third party risks. It could involve risks to your company when information is compromised. or it may involve a virus entering your system and destroying your product data, a hacker stealing the customer credit card numbers stored in your database. It could also include a third party suing you for inadvertently putting a copyrighted picture on your website without permission.

When such incidents happen, at the very least, you’ll spend time and money to restore information, eliminate the threat, and perhaps, deal with any public relations fallout. Your company may also need to compensate third parties for any damages they suffered because of your computer problems.

Although specific policies differ, your traditional business insurance does not generally cover cyberliability. The and legislation to deal with computer security is rapidly changing and still evolving. You need a policy that specifically addresses your cyberliability exposures.

Please contact a TechAssure member to learn more about the insurance and risk management options available to your firm.

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Reducing Your Cyberliability Risk

Cyberliability is a term used to describe how much damage will be done if your company experiences a data leak. Handling private data, as every modern business does, puts you at risk for having it lost or stolen which in turn could leave you facing some very costly lawsuits. Fortunately, there are some relatively easy steps you can take to reduce your cyberliability exposures.

Don’t carry vital data around with you. Mobile devices are great for efficiency. You can look over reports or check your email almost anywhere you go. The down side is that any vital data you carry on these devices becomes a cyberliability risk. It’s too easy to lose or have a smart phone, laptop, or tablet, stolen, then all that data is there for everyone to see. A great alternative is cloud storage. It allows you to access data online without ever downloading it. You log on with a password, use the data, and log off. Nothing is stored so if your device goes missing, the data doesn’t go with it.

Password protection and firewalls are great ways to protect data, but sometimes they are not enough. If a hacker gets through these, you need data encryption as a last line of defense. When you encrypt all your data, even if someone does hack into your system and steal it, they can’t use it.

Strict password policies are something most staff members hate. Coming up with new passwords every month can be irritating and difficult. If you really want to reduce your cyber liability risk this is a vital tool to use. Do not use one password for all your personal and business accounts. All it will take is for a hacker to gain access to one of those accounts, then all of your company data is in jeopardy. It may seem like a pain and it will upset your staff, but a strict password policy will save you a lot of money in the long run.

To discover other ways in which we can help you protect your organization from cyberliability risks, please give us a call.

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Cyberliability Costs Can Challenge Emerging Growth Firms

More and more focus has been put on cyberliability. Internet data breaches, denial of service attacks, and other cyber losses affect Fortune 500 companies as well as small businesses. Loss of customers, sales, costs of investigations, responding to losses, lawsuits and regulatory fines can be astounding. Ponemon Institute estimates that costs to remediate compromises caused by loss or breach can run as high as $200 per affected account. At that rate, it’s easy to imagine how costs can quickly run into the millions of dollars. Most media coverage goes to the big companies, but small companies also run the risk of cyberliability expenses. Big businesses can more easily absorb or has the means to stave off such costs. But emerging companies may be left bare.

Fortunately, there is some help from the insurance industry. In response to serious gaps left by typical liability coverage, companies continue to fine tune their insurance products for cyberliability exposures for emerging firms. Most old policies only covered physical losses such as damage to servers, laptops, or other hardware; the data itself wasn’t protected. The new cyberliablilty policies can be tailored to cover almost any loss, whether tangible or not. In this way, small businesses can protect themselves because of an error, theft, or malicious act against them.

As with any other type of insurance, coverage, rates and reimbursement policies vary from provider to provider. For more information and tips on protecting your corporation from cyberliability exposures, please give us a call and we will connect you with a TechAssure member.

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The Importance of Protecting Your Firm with a Solid Network Risk Program

In a world of constantly advancing technology, more of our information is stored online than ever before. With greater amounts of important data being put into cyberspace, a need to protect this information is increasingly relevant. Protecting your capital with cyberliability coverage has never been easier.

The members of TechAssure can help you structure an insurance and risk management program that can save your assets and reputation when a technological error occurs. Being protected from liabilities relating to processes run by computers and other technology sources is especially important in the tech and life sciences industries. So what types of instances may require the need for network risk?

A simple but common problem in the technology industry occurs with the loss of customer data. This can happen for a variety of reasons, from the company accidentally deleting the information to the installation of defective or virus-laden software. No matter what the cause, the customer is never happy to lose their saved information. Having a solid risk management plan can help restore the relationship between you and the client and ensure a future relationship with them. It also can convey trust while building your client base and raising rounds of finance.

Taking steps to develop a solid insurance and risk management plan around your cyberliability exposures is an intelligent investment for your company. Contact us to learn more about the cyberliability insurance products and risk management services offered by the TechAssure members.