Increase in Cyber Theft Raises Interest in Cyber Liability Insurance

In regard to cyber risk, current business policies in the United States are not created equal. Prominent security breaches in major retail organizations have underscored the need to stay current with this issue. Demand for cyber liability policies was up 21% from 20122013. Insurance brokers and agents are working to provide reliable protection under ever-changing conditions.

What Is a Cyber Attack?

A cyber attack is a breach of security within a companys or organizations data centers. It may come from nation states, terrorists, criminals or internal employees. A breach may happen for a number of reasons, be they political, military or for economic advantage. Perpetrators may steal money or things that may be monetized, such as credit card numbers, personal identification and tax records.

What Are the Risks?

Cyber crime may result in serious financial loss. It is also a major disruption to business as usual, and can cause real damage to a companys reputation. Some of the effects of cyber crime are:

  • Identity theft through criminal acquisition of drivers licenses, birth dates and PINS
  • Theft of customer lists and trade secrets
  • Introduction to a system of malicious code
  • Business interruption
  • Damage to professional reputation
  • System made vulnerable or data exposed through human error
  • Lawsuits

Protect Your Assets

Commercial general liability often does not have the scope to provide sufficient coverage to protect your business in the event of a significant security breach. In todays market, it pays to add cyber liability coverage to your business insurance profile.

 

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