When is cyber-insurance a good fit for small business?Published by Andy Sween on Wed, 2014-02-12 16:34
Don’t look now, but cyber fraud is a hot topic for businesses and consumers right now. Business owners are more aware than ever that protecting themselves from fraudsters is critical, and customers expect that businesses are taking reasonable precautions to protect their data.
Customers and employees who entrust you with personal or private information—such as credit card or Social Security numbers—also put you at risk. If that data is lost, stolen or compromised, your business could face substantial legal liability and regulatory expenses. “Insider negligence” (something as innocent as an employee inadvertently tossing sensitive data in the trash) is also a concern for business owners. When personally identifiable information in your care is compromised, you may be legally obligated to alert those people affected by the breach.
Cyber insurance is now available and affordable through Grand Rapids State Agency. These policies can be customized to your business’ specific needs, but the coverage can include any or all of the following:
- Expenses associated with a security breach incident, including:
- compliance with data breach laws;
- securing legal counsel to advise on incident response;
- providing credit file monitoring for customers;
- hiring forensic experts to investigate the breach;
- Paying regulatory defense and penalties from privacy law violations.
- Reasonable costs to restore your systems and data.
- Payment of an extortion demand.
- Unauthorized access damages, including:
- Authorized use for unauthorized purposes;
- Loss or improper disposal of paper records;
- Data from lost or stolen laptops, smart phones or flash drives.
- Content published on the insured’s website:
- Copyright infringement
- Libel, slander or defamation
- Invasion of privacy or plagiarism.
For more information about this emerging insurance product, contact Mike Olson or Becky Irving at Grand Rapids State Agency (326-1122, ext. 225 or 257).