Cyber liability: Coverage that nearly every kind of business should have if they don’t already.
From retailers, banks, contractors, distributors, restaurants and medical offices, many businesses owners are unaware of the great liability exposure they face. Recent state laws require companies that have experienced a security breach to notify all customers that could be affected by the breach that their information has been compromised, even if the information hasn’t been used. In most cases, the notification also requires an option of one year credit monitoring services and a new card or account number for the customer. Costs can be as much as $250 per individual breach.
Believe it or not, cyber liability insurance makes lots of sense for Business Owners. Here’s why:
Many policies offer “first party” coverage–that is, they will pay you for things like business interruption, the cost of notifying customers of a breach, and even the expense of hiring a public relations firm.
Is your website and any of your data hosted or stored in the cloud? Take a good look at your contracts: You’re still legally responsible.
Most business insurance policies do not cover computer fraud by a third party or the liability arising out of an internet attack. The good news is solutions are available. Make sure your crime policy has electronic crime and fraud coverage with appropriate limits. Liability insurance from Safe Harbor Insurance can be added to your program to cover the costs associated with customer notification and recovery of hacked data. If you store data, including private information on computers; use e-mail; generate revenue online; or use your computer to control production, manufacturing, or inventory, your company is at risk!
In short, any business owner not making an effort to protect personal private information is seriously out of step with the emerging landscape of privacy law.
For more information please visit Murray Wamble – Risk Management Solutions