What is a Data Breach?
A Data Breach is a security incident in which sensitive, protected or confidential data is stolen, copied, transmitted or used by an individual unauthorized to do so. Data Breaches may involve financial information such as credit card and banking information or personal health information.
In the largest known online security breach to date, at least 420,000 websites were hacked by a central Russian crime ring. According to CBS News, the hackers stole 1.2 billion user names and passwords. This leaves the consumer vulnerable to becoming a victim if their accounts are broken into. It also leaves the companies affected liable for the costs of containing the breach. So no one wins here except for the hackers and they are hard to locate and prosecute.
The reported break-ins are the latest incidents to raise doubts that companies both large and small have adequate security measures in place to protect online information. Many businesses are working towards that goal, but it is an ever changing environment that they are dealing with.
What Steps Can be taken to Prevent Data Breaches?
– Use password protection and change them frequently
– Encrypt data on all computers, laptops, mobile devices, flash drives and back-ups
– Secure access to your network with firewalls.
– Allow remote access through a secure manner such as a Virtual Private Network
– Install security updates as soon as they are released
– Install and use antivirus and antispyware software on all computers
– Remove all data from computers before disposing of them
What is Cyber Liability Insurance?
Another important step businesses both large and small should take is to purchase Cyber Liability Insurance. Cyber Liability addresses the first- and third-party risks associated with e-business, the Internet, networks and informational assets. Cyber Liability Insurance coverage offers protection for exposures arising out of Internet communications
A cyber liability policy is insurance coverage for liability that arises out of unauthorized use of or unauthorized access to electronic data or software within your network or business. Cyber liability policies also provide coverage for liability claims, computer theft, extortion or any unintentional mistake, omission or error made by your employee while performing their job. These are most often not covered under you general liability or errors and omission policies.
5 Facts about Cyber Liability Insurance?
1. It’s more affordable than you think.
2. It can cover more than you think, such as business interruption, the cost of notifying customers of a breach, and even the expense of hiring a public relations firm to repair any damage done to your image as a result of a cyber-attack.
3. You probably don’t have a risk management team. Big corporations have entire departments devoted to analyzing the risks the company could face and helping set policies and procedures to protect against them. You don’t–but a good insurance carrier can perform a similar function.
4. Even if you don’t host your data yourself, you’re still responsible. 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.
5. Your general liability policy won’t cover you. Typically, a general liability policy specifically excludes losses incurred because of the Internet. So a good cyber liability policy can pick up where your general policy leaves off.
This is a serious, complicated and ever growing problem. Give Berkely Brokerage Corp. a call today to discuss your potential risk of a Data Breach and whether a Cyber Liability Policy is necessary to protect your customers and your business.