Millions of companies employ people that spend countless hours on computers, uploading information pertinent to the business, including personal and confidential information about clients, customers, and co-workers. The ability to communicate and interact instantaneously on a global scale enables businesses to reach their customers directly, which can be a valuable asset to businesses.
However, this creates a certain amount of risk as this information has value to criminals involved in cyber theft and cyber attacks. As businesses navigate this shifting online risk landscape, they face a range of evolving liabilities including privacy, security, and intellectual property liabilities. Cyber insurance through an OC insurance company can help to mitigate these concerns.
Dealing with losses due to cyber attacks
Businesses are now commonly faced with liability issues stemming from their responsibility to consumers to inform them of, and remedy a breach, and also, in the case of a public company, the fiduciary responsibility to shareholders to disclose a cyber incident when it occurs.
News reports of major corporations being victims of cyber theft and security breaches, demonstrates how easy it is to target businesses. These attacks compromise everything, from personal information to private and public businesses records. Cyber liability insurance is designed to provide protection against unauthorized access to company files and records, attacks waged on a company’s firewall or network security, destruction of data or corruption stemming from a virus, and threats of cyber extortion. Insurance also helps with loss of income resulting from cyber attacks.
Amid the number of high profile data breaches, businesses of all sizes need to step up their efforts to help thwart these activities with increased cyber security. In order to maintain public trust, companies need to demonstrate that the information provided by customers and clients is being properly safeguarded online.
Despite the fact that cyber risks and cyber security are widely acknowledged to be a serious threat, there are still many companies today that do not have a cyber liability insurance policy in place. Insurance has a key role to play as companies look to better manage and reduce their potential financial losses from cyber risks moving forward and an oc insurance policy for cyber threats is the place to start.