Cyber Security Liability

The fastest growing sector of insurance coverage today is internet security liability insurance, or Cyber Security Insurance. At one time, this coverage was for only the large corporate companies who were targeted, but now everyone with a business; especially municipalities are at risk.

Easy Steps To Avoid Internet Attacks

It is well known that older Microsoft Windows operating system software is an easy target for hackers. Town, state and federal municipalities are aprime and easy target because they often forget about the one or two, or even more computers in some back office still running Windows 95! So Hackers look for these vulnerabilities and use it as an open door to the whole network. Don’t take it lightly that hackers won’t go after your network. If you have a weakness somewhere they will find it and hijack your systems for a ransom, or steal your data and maybe secrets to sell on the dark web.

The Basics of Cyber Security Insurance

General Liability and Errors & Omissions Insurance excludes loss resulting from a cyber security attack. To protect your business you’ll need to buy specialized Cyber Security insurance protection. The following are the basics

Third Party Coverage

Defends you and your business and pays settlements and judgments resulting from a cyber attack. Generally covers breach of privacy, defamation, failure to stop unauthorized access to your data and failure of your IT security protocols.

Notification Costs

If you haven’t already at some point you’ll get a letter from an organization notifying you that they were hacked and your personal data may have been compromise. This is part of the cyber security policy that provides coverage to pay for notifying customers of the breach and pay for the cost to offer credit monitoring services to those customers.

First Party Coverage

This acts much like traditional Business Interruption Insurance. It will provide financial support to repair any security leaks, miscellaneous expenses to get things back to normal.

Technology Error & Omissions Insurance

Some carriers have created a more specialized version of the standard E&O policy to include some internet security protection. However, you’ll need to do your homework because most do not provide the notification costs that is always associated with this type of cyber attack.

In the end it is extremely important to make sure you have updated cyber security software, operating systems and making sure your employees are educated in the basic steps and procedures to avoid a cyber attack. One simple innocent click on an attachment can take a company down in seconds.