Cyber Security is Serious Business
We’ve seen the headlines dominate the news – hackers attack Target, Sony Pictures, Premera Blue Cross, Home Depot – the list goes on and on. In each case, personal information, social security numbers, even medical records of millions of people were exposed.
In today’s world where nearly everything we do is accessed online, it’s unnerving to think just how vulnerable our information is if placed in the wrong hands. Whether you’re a business owner or simply use the Internet to pay bills, purchase goods, or connect with family and friends – all it takes is one stolen laptop, one hacked account and suddenly everything you do, everything you’ve worked so hard to protect is put at risk.
Following the Sony hack last year, our agents started fielding more calls and questions from clients, especially business owners, about cyber liability insurance and the role it plays in the case of a cyberattack. One of the statistics that’s stuck in my mind is how much just one data breach can cost a business owner – an average of $5.85 million, according to security analysts.
This is the world we live in and security experts say cyber attacks show no sign of slowing down. Knowing this it's a good idea, if you haven't already, to think about your own online security. As part of National Cyber Security Awareness Month, the U.S. Department of Homeland Security recently released some things every online user should know in order to keep your personal information safe year round.
Online Safety Tips:
Set strong passwords and don’t share them with anyone.
Keep your operating system, browser and other critical software optimized by installing updates.
Maintain an open dialogue with your family, friends and community about Internet safety.
Limit the amount of personal information you post online and use privacy settings to avoid sharing information widely.
Be cautious about what you receive or read online – if it sounds too good to be true, it probably is.
From a personal standpoint, these safety tips make good sense. From a business standpoint, they are a good start but you can do more to ensure you, your employees and your clients are protected.
In the Sony cyberattack the entertainment giant lost millions in film revenue, faced public embarrassment and criticism, and thousands of current and former employees filed lawsuits claiming the company failed to protect their private information. This isn’t the kind of headline any business owner wants to help write.
Cyber liability insurance is a tool that can be used to help cover costs associated with a cyberattack. Some of the benefits provided business owners include:
Covering costs your general liability policy doesn’t
Taking care of costs to notify customers
Handling legal expenses
Business interruption costs
Hiring a public relations firm to manage reputation concerns if needed
If you handle client account information, employee information, you have basic business practices you want kept private, or banking information you can’t afford be made public, cyber liability insurance may be a good solution. As insurance agents, it is our job to provide information and guidance that can help protect your online safety and security. In some cases added insurance may be an option; but in all cases staying informed and aware about the information you store and share online is critical.
For more information about cyber security visit the U.S. Department of Homeland Security website at: www.dhs.gov.
Trevor S. Campbell, CIC, is the President of Insurance Services Group, an Edmonds based independent insurance agency serving auto, home, and business insurance clients throughout Washington and seven other western states. He chairs the Washington Education Committee for the National Alliance for Insurance Education and Research. He is a past President for the Professional Insurance Agents Association of Washington and Alaska and was the 2013 Agent of the Year.
