The Case For Cyber Liability Coverage
Monica Morris • March 15, 2017
With the prevalence of technology in our daily lives, most people have been the victims of cyber attacks, including malware, hacking, or phishing. The repercussions of a cyber attack can become immensely more complex when a business is involved. Potential consequences includes, loss of business, lawsuits, public distrust and in some cases, bankruptcy.
Just in 2016, companies such as Yahoo, LinkedIn, Dropbox, Wendy’s, Oracle and the U.S. Department of Justice all experienced some form of a data or security breach.
Companies that store and maintain client information, use cloud based storage or collect online payment information, should seriously consider adding cyber liability insurance to its insurance policies. In 2015, Symantec, one of the leaders in cybersecurity protection, reported that cyber phishing attacks targeted small businesses 43% of the time and that there is a 50% chance that large companies will be the victim of a cyber crime. In today’s ongoing technological advances, we need to be equally careful with our cyber protection and there are a couple ways to do this:
- Take preventative safety measures;
- Create a safety plan in case of a cyber attack; and,
- Transfer the risk by purchasing a cyber liability policy.
Cyber liability includes financial coverage for both first-party costs, direct costs for responding to a cyber hack or security failure, and third-party costs, which is when people sue or make claims against you. Let’s take a closer look at what these costs include:
Third-party costs:
- Legal defense.
- Regulatory fines and penalties
- Settlements, damages and judgments
- Cost of answering regulatory inquiries.
First-Party Costs:
- Loss of business.
- Investigation and remediation of cyber breach
- Public relations costs associated with cyber attack damage
- Legal advice regarding your company’s notification and regulatory compliance
- Notification costs of communicating the breach.to clients
- Credit monitoring to customers
Cyber liability policies can be written as a stand-alone policy or as part of an existing policy. Whether large or small, businesses should check to make sure they are covered adequately and stay safe.
*This was original posted by Lisa Pillipson at www.myelpe.com . You can find the original Blog post here: https://myelpe.wordpress.com/2016/10/21/the-case-for-cyber-liability-coverage/
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Protecting sensitive data is more critical than ever before. As cyber threats continue to rise, governments and regulatory bodies have introduced compliance frameworks to ensure businesses take appropriate measures to safeguard data. However, understanding these requirements can be overwhelming, especially since they vary by industry and location. We'll discuss some of the most common IT security compliance frameworks—such as HIPAA, CMMC, and CCPA—and explain their relevance to different industries. Whether you work in healthcare, manufacturing, or serving California residents, this guide will help you navigate the complex world of IT security compliance.
In today’s interconnected digital landscape, cybersecurity is more than just a necessity—it's essential to business survival. Cyberattacks are becoming more frequent and evolving in sophistication, leaving companies vulnerable to data breaches, financial losses, and reputational damage. A robust cybersecurity strategy is critical to safeguarding your business from these growing threats. One of the most effective ways to enhance your cybersecurity defenses is by leveraging the expertise of professional IT support services. The Importance of a Strong Cybersecurity Strategy Every business, regardless of size or industry, is a potential target for cybercriminals. The consequences of a successful cyberattack can be devastating, ranging from financial losses and operational downtime to legal liabilities and damage to your brand's reputation. This is why developing and maintaining a robust cybersecurity strategy is more important than ever. 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By partnering with an IT support service, businesses can enhance their cybersecurity defenses through risk assessments, security protocol implementation, continuous monitoring, and employee training. These services protect data and help ensure business continuity and compliance with industry regulations. If your business wants to strengthen its cybersecurity posture, now is the time to consider working with an IT support provider. Doing so lets you stay ahead of evolving cyber threats and focus on growing your business with peace of mind. Ready To Strengthen Your Cybersecurity With SDTEK? Don't leave your business vulnerable to cyber threats. At SDTEK, we offer comprehensive IT support and managed cybersecurity services designed to protect your business and ensure seamless operations. Whether you need risk assessments, ongoing monitoring, or incident response, our team of experts is here to help. 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