Targeted attacks on the computer systems of big businesses have become frequent news stories and small business are in an even more vulnerable position when it comes to cyber-attacks. This increase in the incidents of computer system infiltrations has led to one of the biggest increases in sales of cyber liability policies because smart business owners are aware of the risks involved.
The costs of an infiltration can be extensive when you consider the privacy information that is at risk. Identity theft and financial fraud can occur quickly and without warning.
When it comes to the source of cyber-attacks, the possibilities are endless. Outside governments, criminals, extremists, activists, terrorists and even individual computer hackers are likely to attempt an infiltration into your computer system. Incidents of computer hacking can shut down your business in very short order and cause massive costs for data retrieval and compensation to those who have fallen victim to identity theft.
There are many steps that an organization can take to prevent incidents of cyber-attacks and the liability associated with this type of crime. Upgraded systems, firewalls, secure password administration and secure backup systems are some of the elements of a cyber-liability risk management program, and a dedicated cyber liability insurance policy is another proven way to ensure that your company’s assets are protected.
A standard commercial general liability policy was written prior to a time where cyber liability risks were as prevalent as they are today. Policies are being updated all the time however and you may be able to purchase cyber liability as an endorsement to your general liability form, or you may want to obtain a stand-alone cyber liability policy that provides many specific benefits to a business owner. The types of damage covered by a standalone policy might include damages as the result of identity theft, the additional cost of credit monitoring after a cyber-attack, the costs associated with restoring lost data, and business interruption and extra expense costs following a cyber-attack event.
We now live in a world that is more interconnected than ever before which presents many great opportunities for businesses, however it also increases the risks of running a business. Make sure your assets are protected and talk to a professional about cyber liability coverage today.