Written by Belltown Insurance Group Inc. on Feb 17, 2017
Cyber Liability continues to be a major issue for many businesses. Is Cyber Liability part of your Business Insurance Program? In today’s data-driven social media world, businesses of all sizes have had a cyber-attack or data breach. Statistics show 40% of all cyber incidents affect businesses with fewer than 100 employees. With the recent Target breach, many individuals and businesses are considering cyber or identity theft insurance.
Here are a few examples:
A University of Texas student hacked school network and stole 4,719 student and faculty social security numbers.
A hacker successfully obtains sensitive personal information from the insured’s computer system. As a result, a number of donors bring a claim against the insured for allowing access to their personal information. Total cost to business was over $75,000.
The insured’s Chief Customer Service Officer has his laptop stolen. The laptop contains over 100,000 donor records, including their personal contact information. Notification cost ran over $200,000.
An insured receives an email that appeared to be from its bank but was not. The insured’s employee opened the email, which activated a computer virus called a Trojan horse that reads key strokes from their computer. The perpetrator used this means to obtain banking and password information and initiate a fraudulent electronic wire transfer from the insured’s bank account Total loss to business was $55,000.
Some Items to Consider
With more companies beginning to store information on the “cloud” there will be more universal breaches causing greater losses.
Cyber Liability insurance is a real option providing value added coverage and services.
Industries most exposed are; healthcare, medical, retail, financial institutions, technology and hospitality,
Cyber recovery costs are rising, even with new technology.
Individual states will be beefing up mandatory reporting laws and imposing fines for lack of reporting.
New technologies will allow cyber-attacks to come through smart phones and tablets.
Small businesses may be the most prone, as they have the least protection.
Choosing the right business or commercial insurance plan for your business can be very confusing, so we have developed many different options and programs to meet the needs of our commercial insurance clients in Seattle area and throughout the state of Washington.
At Belltown Insurance Group, we can design a specialized package according to your property, liability, and casualty needs. We are also proactive in identifying any factors that may increase your premiums or change your risk, and provide consulting and risk management options to protect your business.