Cyber criminals are becoming more sophisticated with attacks happening on a larger scale affecting a wider range of targets. These digital bandits also are harder to detect and stop than ever before. Incidents like the two Yahoo breaches reported in 2016 of over one billion records stolen between 2013 and 2014, the Sony hack in 2014, and the recent WannaCry ransomware attack will only become more frequent. As technology continues to evolve with big and small data more bundled than ever, a truly catastrophic cyber event is eminent.
Still ownership of cyber insurance is estimated at only around 22% among all registered businesses in the United States with nearly all of them having less than adequate coverage to protect their organizations against a modest data loss. To further complicate coverage there is constant change in both business development and how criminals are securing data that does not belong to them.
Next, there are examples of loss that don’t meet the definition of covered in a data breech or cyber policy alone. Such as the case where an employee is instructed to wire money or sensitive data to an account, by someone she wrongly believes to be her boss. The question then is would it be covered under commercial crime, commercial general liability, cyber, or would it not be covered at all?
With the advent of most businesses now being cloud based most decision makers are wrongly thinking they are provided guaranteed protection from all losses. What happens when sensitive customer data is lost, stolen, manipulated, or unknowingly given to a third party? The question again is would it be covered by directors and officers, commercial general liability, data breech or cyber liability? These are actual scenarios that have resulted in litigation to determine if the insured should be covered, and under what policy.
Unless the client is working with a team that has access to emergency response and crisis management they will find base insurance coverage alone will not fully solve the problem nor provide future solutions. The client must be working with a team that has access to cyber security risk management with a focus on the people and the process of their organization.
You can budget for the cost of the coverage, but as an employer in today’s litigious environment, you can’t budget for lawsuits for unforeseen errors. With Cyber and Data Breach Liability Insurance, you can transfer defense and settlement costs to an insurance company that has a longstanding tradition of managing claims, rather than your company paying those unknown costs.
Contact firstname.lastname@example.org today to set up a meeting to discuss your vulnerabilites and solutions that our team can provide.