Do you have Cyber Liability Insurance?
If you sell products through e-commerce or maintain electronic customers’ records, a breach of the systems containing this personal/commercial information can be costly.
Liability is an organizational risk for businesses of any size. A non-profit that uses online tools to support fundraising activities can be vulnerable to hackers. A corporate website that does not meet best practices for information security could compromise client information and expose a corporation to liability.
Simply publishing content online can open the door to a multitude of potential exposures such as:
Electronic security breaches involving the personal/commercial information of clients, employees, volunteers, members, suppliers and/or stakeholders
The theft of mobile devices, laptops, USB flash drives and cellphones containing organizational, client, employee, volunteer or member, data.
Cyber Liability Insurance
Speciality insurance coverage for cyber liability risks is relatively new to the marketplace. The possibility of cyber liability lawsuits is a reality that every business owner should consider. There have been several very high-profile personal information breaches that affected tens of millions of records and will cost the companies involved millions of dollars.
If you rely on an online presence and use e-commerce as a method of distribution or have employees who carry electronics that hold customers’ personal/commercial information, your insurance representative can help you find coverage that will protect your organization.
8 Questions to Consider When Buying Cyber Liability Insurance
- How many records containing personal information does your organization retain or have access to?
- How many records containing sensitive commercial information does your organization retain or have access to?
- What security controls can you put into place that will reduce the premium?
- Do all portable media and computing devices need to be encrypted?
- What about unencrypted media in the care, custody or control of your third-party service providers?
- Could you make a claim if you were not able to detect an intrusion until several months or years had elapsed?
Source: Insurance Bureau of Canada http://www.ibc.ca/on/business/risk-management/cyber-liability