The typical business owner often thinks of their insurance exposure to potential loss by theft as something tangible; contents or items that can be physically taken. However, in the rapidly expanding cyber world, information is the new target. Unlike physical theft of contents, cyber liability exposures can involve thieves from around the world who work aimlessly to hack into your computer systems.
Small companies can also be targets of cyber theft as their protection systems are often weak in comparison to larger companies. However, even with more complex security systems, large companies such as Target, Nieman Marcus and Michaels have become victims to cyber thieves.
When a company’s information systems are breached, they become exposed to the threat of :
– Financial loss
– Reputational loss
– Customer loss
Unfortunately, when a company’s information is compromised their customer’s may feel that the company is no longer a secure place to do business. Businesses in the healthcare and financial services industries are often at a higher risk of harming their reputation with a breach, as they typically promise to protect client information and their clients entrust them to do so.
Roughly 110 million customers have been affected by cyber theft at one point or another. This can be mitigated with a Cyber Liability Insurance policy that is designed for the insured based on their specific needs. Coverages can include:
– Loss of Digital Assets Coverage
– Loss of Business Interruption and Extra Expense
– Cyber Extortion
– Cyber Terrorism
– Third Party Protection including network security, privacy liability and employee privacy liability.
Coverage is desiged to indemnify clients and restore their information to a secure status, as it was prior to the loss. If you have further questions on Cyber liability exposure please email info@hwpinsurance.com or call (760)795-2002.
