In the wake of the Target credit card breach that has been making headlines, it’s important to discuss the increasing cyber risk associated with doing business digitally. As we move further into the digital age, more and more business is being done on a computer and online. We’re buying goods and services online, marketing online, storing information on our computers and in the cloud, communicating through email; almost every aspect of our daily life is being tied in with a computer somehow. If you need further evidence of our increasingly close relationship with digital devices, let me point you in the direction of a new crock-pot that you can control from your phone. As our relationship with computers tightens, it’s important for business owners to ask themselves “Are we properly covered for our cyber liability needs?”
Let’s take a look at some facts regarding cyber liability:
- In 2012, 50% of small businesses experienced a data breach
- 20% of customers will leave immediately in the event of a data breach
- 46 states have laws that require notification of a data breach
- In 2008, the most common cyber risks were viruses, followed by inside abuse and laptop theft
So your work laptop was stolen at the local coffee shop. Your business insurance policy may cover the cost of replacing the laptop, but does it cover the cost of notifying all of your clients whose personal information was on a database in the computer? Does it cover the cost of credit monitoring and identity restoration services for these affected individuals? Does it cover defense costs for any legal actions the affected individuals may bring against you? As you can see, the costs associated with this simple laptop theft could potentially be huge.
To help make sure that you have proper coverage, it’s important to review your policy and business operations with your agent. Questions to address may include:
- What current coverage do I have for cyber risks?
- To what extent do I transact business online?
- What type of personal information do I store from customers and prospects?
- What security measures are currently in place to protect from cyber risks?
DeVaul-Buntain Insurance Agency is committed to making sure you are covered for all of your cyber risks. If you have any questions or would like a comprehensive review of your policy, don’t hesitate to contact us!
-Jordan Buntain, CLCS