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Breaches at the Highest Levels Indicate Cyber Coverage Need

Cyber Risk Insurance

Remember the old days of larceny, when a thief actually broke into a company’s safe or vault and stole the valuable contents inside? Of course, nowadays crime has gone as high-tech as anything else, and criminals are finding increasingly clever and nefarious ways to finagle their way around the barriers safeguarding your company to extract funds, proprietary information, and client data-potentially resulting in a damaging, embarrassing, and expensive cyber risk insurance claim.

Recent incidents highlight need for coverage

A few recent security incidents that have come to light illustrate the need for protection. The Office of Personnel Management (OPM) announced a huge breach of personal information, revealing that even sophisticated government data is not untouchable. Approximately 4 million current and former federal employee personnel files (as well as background investigation information typically found in the course of clearing someone for a security clearance) might have been compromised, and CNN speculated that the true number could be upward of 18 million and could include anyone who had ever applied for a job within the U.S. government.

Use of devices can open the door

Businesses rely on smart phones, tablets and other devices to conduct business in an agile fashion today, yet these instruments that provide business opportunity also provide a means of exploitation by criminals. One smart phone manufacturer reported a security vulnerability that could be exploited when employees were conducting business on unsecured wi-fi networks such as those found at coffee shops, airports, restaurants, retail locations, and other public places. Another major phone provider announced a new security vulnerability that attempts to hijack the URLs of legitimate applications. The phone companies work hard to address these security vulnerabilities and inform their customers about updates to firmware and other patches to solve the problems, but they remain moving targets.

Get covered for the risks you face

To ensure your company is maintaining a comprehensive approach to risk management, talk to a professional insurance agent about tailoring a cyber risk insurance policy for your particular business exposures. Policies are most often written on a first-party coverage and third-party defense and liability basis. The former provides financial compensation to help you pay for immediate costs in the event of an incident, while the latter offers protection should you be sued by a client or even one of your partners in the aftermath of a data breach. Call your agent today to learn more about exactly how a policy, tailored to your industry and your business, can offer you the protection from this growing crime.