Auto Insurance AUTO Read More
Homeowners Insurance HOME Read More
Recreational Insurance RECREATIONAL Read More
Business Insurance BUSINESS Read More
Builders Risk BUILDERS RISK Read More
Life & Health  Insurance LIFE & HEALTH Read More

Cyber Liability and Information Security

Question:

I keep reading and hearing about cyber-attacks on big companies like Target and Home Depot and started to wonder if this could happen to a small company like mine. Is there some way to cover these incidents with insurance? If so, can I afford to purchase such a policy? 

Answer:

There is an axiom in the business consulting business that there are two types of organizations: those that have been breached and know it, and those that have been breached and don't know about it - yet. Of course you may believe you are in a third category: those that have not been breached yet. It could happen today.

Maintaining security of electronic systems and the private information therein is a huge concern these days. A breach of your systems and loss of private information is only one type of "cyber exposure" faced by your business. Here are some examples of incidents that could cause you some financial heartburn:

  • A hacker gains access to customer information stored on your server, including credit card numbers. Federal and state laws, as well as genuine concern for your customer relationships, require you to notify customers affected by the breach, provide credit-monitoring services, pay expenses and losses incurred by customers, respond to media inquiries about the breach, determine what led to the breach and fix the conditions that allowed the breach to happen in the first place.

  • An employee sends a customer an e-mail attachment containing a virus that destroys the customer's computer system. The customer sues you for damages caused by the virus transmission.

  • A competitor sues you for alleged financial harm incurred as a result of material displayed on your web site, including defamation, disparagement and infringement of trade dress.

  • An employee opens an e-mail attachment that introduces a virus into your computer system and causes a total shut-down of your e-commerce activities for a number of days.
Posted 9:09 AM  View Comments

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Facebook
Twitter
LinkedIn
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
© Copyright. All rights reserved.
Powered by Insurance Website Builder