DID YOU KNOW……..
Cyber Liability is a rising need in today’s world with companies’ increasing reliance on online systems to manage customers’ information. In 2014 one insurance company has reported the following:
- 31% of reported breaches involved companies with less than 100 employees.
- 75% could have been prevented if companies implemented basic security procedures
- Common breaches were lost or stolen laptops, hacking, improper document or office equipment disposal (dispose of the photocopier without wiping the hard drive.)
Here are some terms to get familiar with:
Remediation Expenses: This can include notifying customers, providing computer forensic services, credit and fraud monitoring.
Privacy Breach: A security incident in which sensitive, protected or confidential data is intentionally or unintentionally released to an un-trusted environment.
Loss Data: May involve personal information (Social Insurance Numbers), financial information (Credit Card or Bank Details) and personal health information.
Potential Exposures include: Stolen or Lost Devices (laptop, PC, storage devices etc.), Stolen or Lost Paper files holding sensitive personal information, Computer System or Network hacked by viruses, security breach, Unauthorized access to computer system resulting in unauthorized access to or use of personal customer information, Improper document or office equipment disposal.
Proactive Breach Services:
- Data risk learning management system: on-demand, web-based training platform on important privacy breach issues such as compliance, privacy security, and privacy
- Incident response plan: access to a customizable privacy breach incident response plan, essential to minimizing the impact and potential fallout of a breach
Reactive Breach Services:
- Notification assistance: assistance in preparing notification to impacted individuals that comply with regulatory requirements
- Computer forensic services: to determine if a privacy breach has occurred and to assess the severity of the breach
- Public relations services: public relations assistance to help restore your business reputation
- Credit or fraud monitoring: to your customers affected by the breach
- Crisis management: time-saving professional service to guide you in handling a breach
The insurance industry is recognizing the need for insurance in this area. Some companies offer an endorsement that increases coverage and give access to risk management services. While other companies are offering stand along policies up to $50 million limits.