Cyber Lability – Not Just for Technology Companies:

Ok – so you own a pizza / sandwich shop.  Do you accept credit cards?  Then you need to consider cyber liability coverage in addition to the insurance you already have for the business and perishable food products.

Are you an artisan contractor?  Do you do painting or carpentry or even landscaping?  If you have a computer with records containing customer information and cancelled checks?  You need to consider cyber liability.

In today’s connected world it seems as if the more we have access to information, the more the bad guys have the same access.

According to NAIC – “Cybersecurity risks have become more significant as critical consumer financial and health information is increasingly stored in electronic form. As people become more reliant on electronic communication, and as businesses collect and maintain ever more granular pieces of information on their customers, the opportunity for bad actors to cause difficulties for businesses and the public is exploding. Recent high-profile data breaches have led regulators to work toward strengthening insurer defenses against attacks” http://www.naic.org/cipr_topics/topic_cyber_risk.htm

The cost of a data breach and the reputational damage to your business after a breach occurs can be devastating.   A cyber liability policy is an insurance policy specifically designed to provide the protection you need.  It can also provide breach management expertise to ensure the breach is managed properly and in accordance with regulatory requirements.  Federal and State laws require forensic, legal and credit monitoring services are in place after a breach to protect customers from the misuse of their personal information.  These costs can escalate very quickly.

A cyber liability policy covers a business’ liability for a data breach in which the customers’ personal information, such as  a credit card number, or cancelled check, is exposed or stolen by a hacker or other criminal who has gained access. The policies cover a variety of expenses associated with data breaches, including: notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from identity theft.

In addition, the policies have the options (endorsements) to cover liability arising from website media content, as well as property exposures from: business interruption, data loss/destruction, computer fraud, funds transfer loss and cyber extortion.

The best advise we can give is to speak with your agent regarding these risks and take the time to evaluate your exposure.

Thanks for reading and please share this information with your friends and family.

 Sanviti Insurance is a local Trusted Choice® agency that represents multiple insurance companies, so it offers you a variety of personal and business coverage choices and can customize an insurance plan to meet your personal or business needs. You can visit Sanviti Insurance online at www.SanvitiAgency.com or call it at 617-389-2020.

 

 

 

 

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