Cyber Liability, Data Compromise, Identity Theft… It seems like we can’t go through a news cycle without hearing about some sort of cyber-attack or cyber-theft. As we continue to become reliable on technology for our daily transactions, there is an increase in the possibility for a hacker to steal our data or a mistake to occur where our data falls into the wrong hands. We have all been made aware through enormous breaches like that of Target or Sony, but that doesn’t mean this exposure is limited to big corporations. Small businesses and individuals face similar risks every day.
Fortunately, insurance carriers are catching up and stepping in to provide important coverages to protect people and businesses from these exposures. All of our carriers have developed cyber protection packages designed to help small businesses and identity theft protection options to help individuals. However, this can be a very complicated area for most of us. What do we need this coverage for and how does it help us?
Generally, there are three types of data issues you can have. You can have your identity (either business or individual) stolen, you can have your confidential information stolen and you can be held responsible if you lose someone else’s information and they suffer financially because of it. These can certainly overlap and often do when a data breach happens to you. Let’s take a look at the three types of data issues.
If your identity is stolen, the hacker/ID thief will use your credit, your accounts, your credit cards and any other financial information they can to pay for whatever they want. Essentially, you are being impersonated and they are paying for things using your identity. There are many expenses related to this type of breach: loss of financial assets, restoring your identity and notify those that are affected by the theft, are chief among them.
Having confidential information stolen, known as data compromise, is another major cyber risk. This occurs when you have corporate or personal information in your care, custody or control and it is stolen and used to yours or someone else’s detriment. You primary expenses will be notifying and assisting those whose information was lost, expenses in restoring breached accounts, monitoring and protection services.
The last issue is being held responsible by another party for any financial loss they suffer. If you have information of another party, it is stolen and the thief steals financial assets or steals the other party’s identity, you can be held responsible for any losses or costs they incur in setting things right. This can include transmitting a virus to another party’s network, disclosure of private information or denial of access to another’s accounts.
Most of these exposures and the expenses that can arise from them can be covered by insurance protection offered by our carriers. We have coverage specifically designed to protect you from each of these data breaches. Feel free to contact us today with any of your data protection concerns and we will help get you the coverage you need to protect yourself and your business.