Cyber & Privacy Liability
Cyber insurance might not be optional anymore
When it comes to a data security breach, it isn’t as much a matter of if it will happen as when. So when a breach happens, you’ll need comprehensive protection from an insurer that specializes in handling cyber risks, offers a full suite of integrated insurance solutions to help minimize gaps in coverage, and understands how to tailor coverage to your business.
How prepared is your company for:
- Identity theft resulting from lost or stolen Social Security numbers or credit card, driver’s license,
or financial information?
- Hacker malfeasance resulting in theft of confidential information or costly e-vandalism?
- A lawsuit stemming from a security failure or alleged technology error or omission that results in damages to customers?
- A lawsuit alleging intellectual property, trademark, or copyright infringement?
- A lawsuit alleging invasion of privacy, libel, slander, defamation, or product disparagement involving information residing as email; on laptops, PDAs, flash drives, or servers; or on the Internet?
- An e-business interruption resulting from a security failure or Internet virus?
- A cyber extortion threat?
- Costs related to privacy notification, crisis management, and disaster recovery?
What every business needs to know about data breaches:
- The culprit is often someone close to your business. A surprisingly large proportion of data breaches are carried out by insiders—over half by some estimates—or by business partners. A trusted employee could be the culprit.
- The perpetrator could live halfway around the globe. To vandalize your building, a criminal must be on site. But a hacker can operate from anywhere in the world. Organized cyber crime rings operate worldwide 24/7.
- Size doesn’t matter. Half of all companies that suffer data breaches have fewer than 1,000 employees.
- Any company can be hit. Cyber criminals don’t care where they steal private information from: retailers, health care institutions, manufacturers, professional service providers, media and entertainment companies, and financial institutions are all likely to be targeted.
- A breach can result from a simple mistake. An employee might misplace a laptop, Blackberry, or computer tapes or leave these in an unsecured location, such as an unlocked car.
- Cyber risk is steadily increasing. Data breaches affect hundreds of millions of records a year and reports of breaches continue to rise at a dramatic rate.
The costs of data security breaches can be significant:
- Many states require companies to notify all of their customers if a breach is even suspected and to take necessary steps to correct the situation—a cost estimated at up to $30 or more per customer. Multiply these costs times your company’s total number of customers, and you’ll see how they can quickly add up.
- Often overlooked is the potential loss of confidence in your organization by your customers and potential customers when a security breach occurs. The fact is that a cyber security failure can significantly impact shareholder value, as well as corporate stability, reputation, and financial performance.
- Until a data breach occurs, there’s really no way to know the extent of the leak or the financial devastation it can cause.
- Maybe that’s why businesses often underestimate their data security breach risks. Even if your business uses state-of-the-art security controls, your customers, shareholders, and corporate assets are still at risk from a determined criminal element that can bring operations to a grinding halt.
When you stack up the potential costs brought on by a data security breach, risk mitigation—through insurance coverage and loss prevention—is more than a smart investment. It’s business critical.