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Cyber Liability Insurance - "A Must Have"

Monday, February 09, 2015   (0 Comments)
Posted by: Christina Royle
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Cyber Liability Insurance - "A Must Have"

 

All businesses are at risk, particularly the small to medium size businesses who have less sophisticated security measures. They are much more vulnerable than the "big guys".

 

January 30, 2015 - BALTIMORE - The total cost associated with a security breach of data could strangle a business. There are costs associated with investigating who is responsible for the breach, notifying who is affected, and resolution to the breach. As of this month, 47 states have privacy laws making businesses responsible for customer data retained on their computer systems. The laws vary by state, but all have some form of notification and monitoring requirements included for what a business must do after a breach is discovered.

 

The issue at hand is that the data breach laws have created an additional cost to be burdened by somebody. Typically, whoever lost the information. Typical Cyber liability insurance can have 3 components:

 

1. Loss prevention or avoidance: Most companies offer pre-breach security suggestions. Vulnerabilities will pointed out and solutions identified.

 

2. Protection: In the event of a breach, this is what we typically think of when we think insurance. If your data is compromised, it provides funds for notification and monitoring. Loss of income could be replaced if you are breached, your servers go down, or your important data is lost.

 

3. Resolution: Your insurance company, in the event of a breach, will investigate the situation, provide a remedy to the extent possible at the time, and most often will provide solutions for future prevention.

 

Cost of this coverage has come down recently, but is still dependent on many factors including size of company, industry, volume of data, and security systems in place. For more information on cyber liability products, please contact us at www.americanheritageinsurance.com or (410) 552-1200.

 

For more information please contact Jeffrey Morsberger, 410-552-1200, jeff@amherit.com


CRTC Legal/Privacy  ::  Legal