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.
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.