What is cyber liability insurance?
Before we discuss about that, first let us find out what liability means. Liability insurance is something that is important to have in many aspects of our lives. Many individuals need liability coverage to protect them as they drive a car or protect their home and valuable possessions should a law suit be filed against them. In the event of a claim the liability insurance pays the person who files the claim not the insured. This protects the policy holder from having to pay out of their own pocket any expenses such as lost wages, medical bills or any other compensation in the event someone was harmed through some fault of the policy holder.
Now that we understand what liability means, lets talk about cyber insurance. Cyber Liability addresses the first and third-party risks associated with e-business, the Internet, networks and informational assets. Cyber Liability Insurance coverage offers cutting edge protection for exposures arising out of internet communications. The risk category includes privacy issues, the infringement of intellectual property, virus transmission, or any other serious trouble that may be passed from first to third parties via the Web.
If you own a small business or a website, you are at risk of a security breach. Payment Card Industry Data Security Standards or PCI DSS contractually bind all businesses that accept debit and credit card payments to take certain steps to secure credit and debit card information they collect – referred to as PCI Standards. These standards are detailed and beyond the scope of the presentation – but may as well impose greater security steps than state or federal laws. According to Wall Street Journal, hackers find it easier to penetrate security of smaller companies who employ less than 100 people. Visa told WSJ that 95% of credit card breaches are against its smallest customers.
A breach can occur in many different ways. It could be aided by significant errors, hacking, utilized malware, misuse of privilege and even physical attacks. The industries that get hacked the most are retail, financial services, and food and beverages.
So, how do you reduce the risk of cyber threat?
- Ensure essential controls are met.
- Find, track, and assess data but do not retain data if not necessary.
- Audit user accounts and credentials and review for signs of abuse.
- Test and review web applications
What will most cyber insurance pay for?
- Data Breach Costs – Cost to determine scope, cause & extent of disclosure
- Website Damage – Cost to repair damage to website
- Denail of Service – Loss of business income due to cyber attack
- Cyber Extortion – Costs of handling threat, including extortion money demanded
- Damage to software, hardware or data – Cost to repair data rendered useless by a virus or other malicious code
- Libel, Slander or Defamation – Damages for liability to others due to defamatory info sent or posted on internet
- Copyright or Trademark Infringement – Use of copyrighted or trademarked info without proper permission
- Breach of Confidential Information – Release of non-personal information that you were required to protect
- Employee Theft or Fraud – Loss due to theft by employees using electronic means
Ask your insurance carrier if cyber insurance will pay for your loss.
To find how much risk a data breach can cost, use the Data Breach Risk Calculator.
Courtesy of www.austinstanovich.com