Data breaches are so commonplace now that they hardly make the news anymore. While some major companies have been recent targets of cyber-attacks, small, and mid-sized businesses also operate under threat from hackers. This is due in part to what is perceived as easy accessibility and potential for high profits from any acquisition of personal information. There has been a rise in the purchase of cyber liability policies, including oc insurance, which is available to businesses operating in and around the Southern California area.
Cyber-breach scenarios, such as third-party attacks on companies, are high in numbers and varied among the types of businesses targeted, but growing in frequency and severity. A hacker may find it easy to gain access to a company’s network where sensitive client information is stored and is then able to make fraudulent fund transfers or use the information to sell it for identity theft purposes.
Network breaches can be costly
Any company that relies on electronic storage of their client’s private data must understand the types of liabilities it could face with the breach of its computer network. Having a comprehensive cyber liability policy can help to protect the company from an array of third- and first-party breach liability exposures. Those companies using service providers shouldn’t rely on their providers’ insurance policy in the event of a cyber-breach claim given that they are likely to still be liable for any damages incurred.
But first party breaches should also remain under consideration. If a completely trustworthy employee takes a laptop from the office only to discover that it’s been stolen out of his or her car, or they inadvertently publish private client information on the company website, this is also an insurable incident. These scenarios can, and do happen, and a commercial general liability policy will not protect against data breaches.
Should you experience such an attack, your company should consider hiring cyber security professionals to conduct forensic analysis to determine the cause of any breach and begin the preparation process of the affected network. Having an adequate cyber liability policy from orange insurance is designed to reimburse notification and forensic costs as well as restoration and business interruption costs.
Today’s technology provides great opportunities to many in the business world, but also opens up businesses to a whole new set of liability exposures. Speak to an agent to determine what type of policy will address your needs.