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Insurance Can Help Protect Against Losses From Cyber Crime
By Timothy S. Maurer, CIC
If you are in a business, you or your company certainly purchases insurance coverage for losses from a fire or other disaster and for losses caused by robbery or theft. These policies cover losses to tangible property as well as your product liability related to the product you produce or the service you provide.
But what about losses that arise from intangible property, such as the information on your computer? According to SecurityIntelligence, which tracks trends and data on the information security industry, the cost of cyber crime is expected to reach $2 trillion worldwide by 2019, up from $500 billion in 2015.
If you are online in virtually any way, you could be a victim of cyber crime, and the losses could be devastating to your business. For example:
As is obvious from news stories from around the world, cyber crime is not going away. In fact, cyber criminals continue to find new ways to attack businesses, governments and individuals. Just as you protect your company against losses from fire or theft, you should consider protecting it against cyber losses.
- If you store personally identifiable, confidential or HIPAA-related information about employees, clients, prospects, customers, other businesses, etc., in your system, you are at risk of being hacked and having that information pass into the hands of criminals who could use it for illegal purposes. This could make you liable for the misuse of this information by the cyber thieves, and it could seriously damage your company’s credibility and reputation. Depending on the extent of the breach, you could be responsible for contacting credit reporting agencies and for providing affected people with credit monitoring services for 12 months. You might need to call in public relations professionals to help you deal with the fallout.
- If you are infected by a computer virus, your system could be inoperative for a period of time, resulting in significant expenses for repairing and restoring your system, including identifying the virus, removing it and bringing your system back online. You also probably will have productivity or Business Loss of Income losses during the period while your system is down.
- If your system is infected by a virus and you unknowingly transmit that virus to someone else’s system, you could face third-party liability for the losses incurred by that entity. This could occur if you transfer information to another party or even if you send an email with a compromised attachment.
- If you are the victim of a ransomware attack, in which hackers take control of your system and refuse to give it back unless you pay a ransom, you could face extensive costs related to either paying the ransom or re-creating your system.
There is a range of coverage options available through several carriers. At The Bensman Group, we can work with you to find the right coverage for your business, based on considerations such as the size of your company, the kind of business you conduct, the kind of information you store in your system, what your company and your customers do online, etc.
If you would like to talk about cyber coverage or about any other insurance need, contact us at 847-572-0815 or email@example.com.