Cyber Liability Still in the Forefront
Computers have been around for a while now and the insurance industry has had Cyber Liability products for 15 years. It is only recently, however, that interest in them has really begun to soar. Clearly, stories of Edward Snowden and the NSA, large retail security breaches, along with just common sense that the more we rely on technology, the more risks are possible, have created a new awareness of Cyber Risk.
I recently wrote a blog about the recent Cyber breaches in the State of Vermont. Just when you think it can't happen to you, you realize that it really can, and that it is happening in your own backyard.
Cyber risks are also changing. Previously, the claims were predominantly viruses, and hackers taking records. Increasingly, the claims are "ransom", where the hackers will only return your data for a price, and "denial of service", where they take over your website so your clients cannot use it.
I think the Insurance industry is doing a good job of letting people know that there is coverage available for these new internet and technology related risks. We may be forgetting one important point, though. If you purchase a Cyber Liability Policy, you get access to experts in the field of Cyber breaches. For instance, what if you suspect that you might have a breach but you aren't sure? What if your supplier notifies you they breached your records? How do you quantify damages or find out which records are breached in order to follow proper regulations surrounding notification procedures? A Cyber Liability Policy comes with a team of Cyber Forensic Experts who can assist you with these tasks as well as public relations damage control. Their task is to minimize any damage done. Those services alone can be worth the price of the policy.
If you have any questions about how to protect your business and Be Ready for Anything, give me a call at 877-352-2121 or email srichardson@clark-mortenson.com.
