5 Reasons your Business should have Cyber Liability Coverage
I recently read an article by the New York Times stating the Chinese possibly hacked into US Federal Government Personnel files. According to the Times, “They appeared to be targeting the files on tens of thousands of employees who have applied for top-secret security clearances.” WHAT??? (Read the article here)
Now, it hasn’t been confirmed that any data was stolen – but will we ever really know? Maybe not. The point is, if the Federal Government’s fire walls and top shelf security systems can be breached don’t you think your business might be at risk?
Before you say that your data isn’t nearly as juicy as top secret spies, think again. Your data will be a lot easier to get to and I guarantee if you have employees, take down any type of personal information from clients – including just their dates of birth or drivers license numbers – hackers can make a buck off of you.
Here is the scary part – you can be held liable for that data and yes, you can get sued. Beyond that you will be responsible for notifying clients and employees that their data MAY have been compromised. Note I stressed “MAY”. Each state, and country, has different laws on what companies are responsible to do in case of a breach. It is important to know the law.
Here are the 5 reasons:
1. It is not IF, but WHEN you will have a data breach and/or compromise. As we rely more and more on technology it is simply a numbers game.
2. The cost for notification is in excess of $200 per record! Health Care Providers take a deep breath – yes, that can add up pretty quickly.
3. Your business could come to a halt – you need a back up plan and funds to keep you going.
4. Often times it is employee human error that results in a breach – clicking on a phishing link in an email, sending private data unsecured, not shredding private data
5. Because businesses are mobile and we tend to want everything at our finger tips. You got it: Hackers will steal phones, tablets and laptops. And no, having a password to get it won’t stop them.
Do you have to wait until your policy renews to endorse your current policy or get a stand alone policy? NO!
Is it expensive? It depends on your limits of coverage and the size of your risk. Each policy is customized to what you need and may have several layers – there is no standard pricing.
I don’t take credit cards, do I really need it? Yes, Cyber Liability Insurance will also cover your business if you computer system gets hacked into and you cannot conduct business. Don’t forget if you have employees, you have social security numbers that can be stolen!
What are the CT laws? This is from the CT Attorney General’s Office READ HERE
It’s complicated and overwhelming. That’s why it is important to have an in depth conversation with your Founders Account Executives and Managers about your specific risks!
Give us a call today, 860-482-3506 don’t wait until your company shows up in the NY Times – and not in a good way!