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Cyber Liability Insurance
In general terms, cyber liability insurance refers to the use of computers, internet, computer networks and other electronic related information or databases. Data exposure is not limited to the use of the internet to conduct business such as information and intellectual property. There are two general categories that a company can be exposed to:
1. 1st party losses: those losses suffered by an enterprise
2. 3rd party losses: a company’s liability to third parties
Standard liability and property policies will not traditionally cover Cyber Liability/Data Breach exposures or claims. The most comprehensive coverage would be on a Cyber Liability policy which can provide a range of coverage including: first party, third party, publishing or media, technology errors and omissions, terrorism and extortion coverage.
In 2012, Verizon conducted a data breach investigations report that showed small businesses continue to be the most victimized of all companies. Of the 621 confirmed data breaches in 2012, close to half occurred at companies with fewer than 1,000 employees, 193 of those incidents were at companies with fewer than 100 workers. A seperate report from Symantec confirmed that trend and found that 31% of all attachs in 2012 were at companies with fewer than 250 employees, that percentage is up 18% from 2011. You can read more about this growing trend at CNN.
A data breach is a security incident when sensitive or protected data is copied, transmitted, viewed, stolen or used by an unauthorized individual. Data breaches may involve financial information such as credit card or bank details, personal health information (HIPAA), personal identifiable information, trade secrets or intellectual property.
The street value for stolen data can be upwards of $50 per medical identity vs. $1 per social security number. This can become very costly when considering thousands of personal and sensitive data could be stolen at any given time.
The impact of a data breach or cyber liability claim on an organization can be devistating financially. Losing customers or a damaged reputation can put a stop on your Company’s progress temporarily or indefinitely. Here are some examples of having a cyber or privacy risk:
- connected to the internet
- business websites and internet advertising
- customer forums
- paper documents
- data stroage, cloud
- credit card processing or online payments
How much would it cost your organization to comply with notice laws and rebuild confidence in your organization after a significant data breach or cyber liability loss? Bozzuto & Co. Insurance Services will make sure you have the necessary coverages to protect you in the unfortunate event you suffer a loss.
Give us a call at 800-400-6394 for a free quote!