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What is Cyber Insurance?
What is Cyber Insurance?

What Is Cyber Risk? How Can I Be Sure My Company Is Safe?

In today’s technology driven world the risks associated with doing business online and storing sensitive customer data electronically have never been greater. This exposure or risk is known as Cyber Risk. Cyber Risk is steadily increasing and data breaches now affect hundreds of millions of records a year. Reports of breaches continue to rise at a dramatic rate and there is not a week goes by without another company (from large corporate enterprises to small local businesses) reporting a loss as a result of a cyber attack. It does not even have to be a hacker – losing a company laptop with sensitive customer data (such as Social Security numbers or credit card details) also opens you up to cyber exposure. You are responsible for protecting this data and can be liable if it is compromised.
The fact is that cyber security threats can result in significant out-of-pocket and reputational costs to a company. For example, did you know that many states now require companies to notify all of their customers if a breach is even suspected and to take necessary steps to correct the situation – a cost estimated at up to $30 or more per customer. Multiply these costs times your company’s total number of customers, and you’ll see how the financial cost can wreak havoc with your bottom line to say nothing of the effect it will have on your customers’ trust and confidence in your company.
This is where we can help. There are insurance policies available to help you take the necessary steps to protect your business by means of prevention & to help cover the costs in the unfortunate event of a Cyber crime. Contact our office today to be sure your company & your customers are safeguarded.

Cyber Liability: Claim Examples
Human Error

A non-profit community action corporation printed two 1099 forms on one piece of paper. An employee was asked to separate the forms & send each to its rightful owner. Instead, one person received both copies. The mistake sent tax forms as well as social security forms to strangers. Over 50% of those involved with the non-profit received their forms as well as a second form not belonging to them.

Unauthorized Access

An international computer hacking group gained access electronically to the computerized cash registers of a restaurant chain & stole credit card information of 5,000 customers. This resulted an a flood of fraudulent purchases around the world!

Privacy Breach

An employee of a rehabilitation center improperly disposed of 4,000 client records which was in violation of the center’s privacy policy. The records contained social security numbers, credit & debit card account numbers, names, addresses, telephone numbers as well as sensitive medical information. The center settled the claim with their home state of Massachusetts and agreed to pay fines & penalties to the state as well as to offer $890,000 in customer redress funds for credit monitoring on behalf of the victims.
For more information on Cyber Insurance or other types of Business Insurance please contact us at 610.777.4123 today!

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