What is Cyber liability? It is your company’s exposure to the costs and liability arising out of data breaches as a result of

  1) malicious attacks against your computer network and

  2) any form of unauthorized release, misuse, or failure to protect business or personally identifiable   information under your control.

Sooner or later, your business Computer Network will probably be hacked and personal information for your employees and your clients will have been compromised. That personal information might include social security numbers, driver’s license numbers, credit card numbers, and bank routing numbers and account numbers.

Here are some interesting numbers! 30% of small businesses experienced a data breach in 2013 and 53% of those experienced more than one breach. There are 3 main causes of breaches: 1) Malicious attacks (44%) 2) Human Error (31%) and 3) System Glitch (25%).

How much personal information belonging to your employees and clients do you retain in your Network data base? How many clients do you have?  If your Network is hacked, can you afford the expense of notifying your employees and clients, paying damages from possible HIPAA violations, fines for violations of federal and state protection rules, and punitive or exemplary damages?

Do you use Social Media (the Web, Facebook, Twitter, etc.) to promote your business? Many lawsuits are being filed due to copyright infringement, defamation of character, and invasion of privacy as a result of comments posted on Social Media sties.

Your current liability insurance policy does not address such exposures. You need a separate Cyber Liability policy in order to have the proper protection.

C. T. Lowndes & Company highly recommends you speak with your agent and purchase a Cyber Liability policy if you store employee/customer data in electronic form.

Posted 8:38 AM  View Comments

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