Are You in the 99%? An Update on Cyber/privacy Liability
Every week brings new stories of data theft, lost or stolen laptops, computer hacking and other cyber incidents. There are now over thirty insurers offering some form of “Cyber” insurance, and prices are dramatically lower than a few years ago. Despite all this, less than 1% of potential buyers have purchased a “Cyber” insurance policy.
If you are in the 99% without this coverage, consider these facts:
If you own or use a computer, you are at risk. The Internet, mobile apps, e-commerce, business websites, message boards, online credit payments, data storage in the cloud – all are sources of potential loss and/or liability.
Theft of personally identifiable information and personal health information is big business. The street value of medical identity is $50 per record; a Social Security number is worth $1. Do the math for your organization.
In addition to state laws dealing with information security and privacy, federal laws include HIPAA, GLB, FCRA and FACTA. (If you don’t know what these initials stand for, we can give you a quick review.) If you have any connection with a healthcare provider,be forewarned that you need to be in compliance with HIPAA.
If you store data in the cloud or contract with outside service providers, your agreements may impose liability on your organization. Read them carefully, preferably before signing.
Information and intellectual property are an organization’s most valuable asset. Traditional insurance policies intended for “brick and mortar” exposures either do not cover “cyber” risk or offer minimal coverage which may be inadequate for your needs.
Admittedly, “Cyber” policies are complex and require detailed applications for coverage. Beacon Insurance Services will walk you through the applications and review policy forms to find the most appropriate coverage. Please call on us for a full review of this important subject.