Cyber Insurance

No InfoSec program is complete without cyber insurance coverage.

Almost unheard of just a few years ago, cyber insurance is now front and center in security programs. This insurance addresses two basic risks: first, the liability risk to an organization if sensitive client or employee information is compromised, and second, the risk (and substantial cost) of notifying clients that their information has been compromised. While many businesses worry about potential lawsuits by customers stemming from a database breach, the major risk is the cost regarding damage to the company’s image and in dollars in managing such a breach.
Average Cost per Compromised Record
Data breach mitigation costs continue to increase as state notification laws are evolving. This combination is making cyber liability coverage a business requirement. With proper coverage, your carrier’s resources handle notifications in accordance with each states specific requirement. Protection is available to safeguard your business by providing coverage for legal liability, defense costs and expense reimbursement (including notification costs).

Ponemon Institute LLC–”Annual Study: Cost of a Data Breach”–2015.

4 Reasons Why You Need Cyber Liability/Security Protection in 2016

  1. Stringent Laws/Regulations
    Failure to comply with legal and regulatory obligations places the success and reputation of your business at great risk.
  2. Advances in Technology
    Today’s technology makes safeguarding your business against privacy breach more important than ever.
  3. Global Outsourcing
    Privacy risks don’t end at corporate firewalls. Your business is responsible for any breach (including outside contractors).
  4. User Error
    Copying medical records to the wrong email address, putting personally identifiable information on public mailing labels, losing data storage tapes/flash drives or forgetting to properly secure or shred confidential information can lead to a data breach.

Courtesy of CBIZ Insurance Services, Inc.