Cyber liability may be the last thing on your mind. It may seem to you that it would have little impact on your business. You may think you are not a target for cyber-crime. The truth is you are indeed at risk for cyber-crimes albeit they are not the same as a large retailer but still there can be significant risk.
In this day and age as we continuously move to more automated and online technologies we are increasing the opportunity for people with less than good intentions to enter our systems. These criminals are not always there to steal sometimes they are just there to cause damage. The damage can cause downtime for you and your business and result in a loss of income.
You also have risks from your employees' daily use of your technology. Perhaps they open an email with a virus attached that takes down your network and you lose critical data. Maybe that same email virus goes into their address book and sends the same virus-laden email out to all of your customers. You may be responsible for their expenses to repair any damage to their systems. These examples happen every day at an ever increasing rate.
If you accept credit cards you have a responsibility to protect those customers' credit card information.This is a pretty obvious example of what you need to protect. Other things you might consider are customer contracts, agreements and bid requests. You also have a responsibility to your employees to protect their information from getting into the wrong hands.
Some of your most vital information that is at risk is your employees'. You have a duty to protect them and ensure that their personal information does not get into the wrong hands. If it does you have the responsibility of making it right. This could cost you time, money, and the loss of good will with your employees.
Have a plan. Develop procedures should you suspect or have a data breach. If you do not have IT personnel on staff, have your IT provider develop a plan you can implement before the problem arises. If you do have a breach in your data storage often times the late notification is what will get you into more trouble than the breach itself. If you have a set plan as to how you will notify your customers, employees, or vendors of a breach that may affect them you will be better protected. If you need help developing a plan feel free to reach out to me and I will help you. The insurance coverage for cyber liability is very affordable and provides in most cases very broad coverages. Here are some examples of coverages:
- Loss of digital assets - resulting from damage to or corruption of your electronic data and computer programs
- Business income interruption - income reimbursement for the loss of income while your computer systems are restored
- Cost of notification - cost to notify customers, vendors, or employees of a breach and any regulatory fines, penalties, or public relations costs
- Extortion costs - reimbursement for extortion expenses from a credible threat to your computer system
These are just a few of the coverages available. If you would like to see what coverage is available for your company’s data please reach out to me and I will help you select the best carrier for your needs.
Jamie Benthusen is a commercial insurance producer for FGMK Insurance based in Bannockburn, IL. He draws on his 16 years in the aviation industry to tailor insurance programs for the aviation industry. FGMK insurance combines the personal service of a boutique insurance broker with the experience and resources of a national insurance broker. For more information on commercial and aviation insurance coverages you can contact me anytime at [email protected].
