Cyber Liability continues to be a major issue for businesses in 2014. In today’s data-driven social media world, businesses of all sizes have had a cyber-attack or data breach. Statistics show 39% of all cyber incidents affect businesses with fewer than 100 employees. Henry Insurance can provide you with a business insurance review today. Here is the latest information:
Human errors and systems glitches caused nearly two-thirds of data breaches globally in 2012, while malicious or criminal attacks are the most costly everywhere at an average of $157 per compromised record. 2013 Cost of a Data Breach: Global Analysis, Ponemon Institute and Symantec, June 2013
More than 232.4 million identities were exposed overall during 2011. Deliberate breaches mainly targeted customer-related information, primarily because it can be used for fraud. A Chronology of Data Breaches, Privacy Rights Clearinghouse,2012
In early October 2013, a UW Medicine employee opened an email attachment that contained malicious software (malware). The malware took control of the computer, which had patient data stored on it. UW Medicine staff discovered this incident the following day and immediately took measures to prevent any further malicious activity. Over 90,000 patient’s information was stolen.
Some Items to Consider for 2014
- With more companies beginning to store information on the “cloud” there will be more universal breaches causing greater losses.
- Cyber Liability insurance is a real option providing value added coverage and services.
- Industries most exposed are; healthcare, medical, retail, financial institutions, technology and hospitality,
- Cyber recovery costs are rising, even with new technology.
- Individual states will be beefing up mandatory reporting laws and imposing fines for lack of reporting.
- New technologies will allow cyber-attacks to come through smart phones and tablets.
- Small businesses may be the most prone, as they have the least protection.
Cyber liability coverage (for data breaches) has evolved from just insurance for information technology companies to coverage that nearly every kind of business should have – if they don’t already. From retailers, banks, contractors, distributors, restaurants and medical offices, many businesses are unaware of the severe data breach exposure they face. In short, any business not making an effort to protect personal private information is seriously out of step with the emerging landscape of privacy law. We can provide your firm with the right combination of pricing and coverage.