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.
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.
Network risk exposures are broad and touch most every business. The internet and related technologies have changed how we conduct business. We now have the ability to store and share data across interconnected networks. This creates efficiencies in all parts of an organization, including sales, marketing, data management and vendor relations.
The benefit of using internet-based technologies is broad, but they increase risks for most firms. Specific risks include:
- Theft of private data
- Theft of sensitive data, including health and financial information
- Manipulation of information
- Computer viruses
- Damage to hardware
- Damage to operations
Most corporate insurance policies exclude exposures from the internet or network. If your organization has most of it’s’ exposures in these areas you will need to explore insurance and risk management programs that are designed to cover those liabilities.
More than ever, staying fully informed and up-to-date with the latest industry trends is the best way to remain competitive and relevant in a changing market. A TechAssure member can help you identify the best program for your network risk exposures.
Intangible property is a large part of most technology firms. Intangible Property includes software and data, exposed to damage or theft by electronic means such as virus, unauthorized access or usage, as well as theft of computer system capacity.
Property forms respond to direct physical loss such as fire or windstorm – not computer attacks. Limited coverage may be available for intangible property loss due to a physical event, but property forms are not able to sufficiently deal with loss resulting from non-physical events such as viruses or other types of computer attacks.
Under a comprehensive network risk program, coverage for the damage, destruction, corruption or theft of an Insured’s important information assets, including bandwidth, due to a covered computer attack. That may address some of the coverage concerns for intangible property. However, every exposure and situation is different.
TechAssure members are experts in designing insurance products that are tailored around the unique needs of a technology firm. Contact a TechAssure member to help you design a comprehensive program.
Website content is liability resulting from the content of web sites including claims alleging intellectual property infringements or personal injury such as defamation, libel, and slander.
General Liability policies often cannot address the complexities of advertising and personal injury arising out of content on the Internet, and in many cases exclude them.
However, a comprehensive network risk program could include coverage for content-based injuries such as libel, slander, defamation, copyright, title, trademark infringement, or invasion of privacy arising from the display of material on an Insured’s web sites.
Contact a TechAssure member to learn more about the unique coverages under a comprehensive network risk program.
Chances are no, a General Liability policy is unlikely to respond to the full scope of network risk exposures. Network risk is liability arising from a breach of network security, including unauthorized access, transmission of a virus, and identity theft.
General Liability policies cover bodily injury and property damage to tangible property. They do not address the liabilities arising out of computer attacks, such as transmission of a virus and theft of customer information, including that which results in identity theft.
As an illustrative example: laptops containing confidential customer information of a client were stolen from a company. The client is demanding that the company pay for the costs of complying with the California Database Protection Act, as well as costs to provide credit monitoring and id theft coverage for their customers.
The best avenue for building coverage to respond to that claims scenario would be a custom tailored network risk program designed around your needs. If a comprehensive program was designed, it could provide coverage for some of these events.
It is important to note that this is simply a representative scenario and are by no means an exhaustive list of exposures or coverage solutions.
A TechAssure member can help you design coverage options that are tailored to your unique needs.