Marrs Maddocks Identifies Increasing Need for Cyber Liability Insurance

Responding to ProjectWestWind, action taken on October 1 by Anonymous hacktivists to release personal records from more than 100 top universities, Marrs Maddocks, a San Diego insurance agency, has intensified its message about the need for businesses to protect themselves against cyber crimes. Many companies may be under the misguided assumption that their business owner policy (BOP) covers those incidents; while it may contain some incidental coverage, businesses with any real exposure need cyber liability policies, which are more in-depth and have higher coverage limits.

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Marrs Maddocks Identifies Increasing Need for Cyber Liability Insurance

Marrs Maddocks Identifies Increasing Need for Cyber Liability Insurance

The evolution of technology has made life easier for us all, enabling access to a wealth of information with just a few mouse clicks. Unfortunately, that information is susceptible to those without noble intentions.

San Diego, CA (PRWEB) October 13, 2012

Responding to ProjectWestWind, action taken on October 1 by Anonymous hacktivists to release personal records from more than 100 top universities, Marrs Maddocks, a San Diego insurance agency, has intensified its message about the need for businesses to protect themselves against cyber crimes. Many companies may be under the misguided assumption that their business owner policy (BOP) covers those incidents; while it may contain some incidental coverage, businesses with any real exposure need cyber liability policies, which are more in-depth and have higher coverage limits.

“The evolution of technology has made life easier for us all, enabling access to a wealth of information with just a few mouse clicks,” said Daniel Marrs, agency principal. “Unfortunately, despite sophisticated security measures like firewalls and encryption, that information is susceptible to those without noble intentions, hackers who perpetrate data breaches that can be painful from a privacy and financial standpoint.”

Business owners need to think about how they would fare if their companies’ electronic data fell into the wrong hands. Retailers have a tremendous amount at stake, since they accept credit cards and have those numbers stored, but just about any business has secure information on its servers that could be breached—healthcare providers, educational institutions, professional services providers, technology companies, non-profits…the list goes on and on.

Despite heightened awareness of the problem, the number of breaches continues to rise. A 2008 study found that 50% of companies surveyed had experienced one to five cyber risk incidents. Even the most expensive computer security has vulnerabilities; research into 500 breaches found that half of them required no skill at all to accomplish.

Cyber liability policies cover a laundry list of things that might be associated with being hacked, starting with the cost of notifying those whose data has been breached, which is estimated at $200 per record. Other out-of-pocket expenses this specialty insurance covers include forensic investigations, business interruption (lost revenue), crisis management (hiring PR professionals for reputation reestablishment), credit monitoring and regulatory liability.

Like all insurance, the limits selected with respect to coverage and deductibles will determine the premium amount, along with the perceived exposure. The cost isn’t typically prohibitive, especially given the alternative; cyber crime losses have been reported up to half a million dollars. While there’s only so much businesses can do to protect their data from hackers, securing cyber liability insurance is a way to cushion the financial blow that results from their attacks.

Marrs Maddocks & Associates is an independent San Diego insurance agency with over 300 years of combined experience. Marrs Maddocks offers an educated, committed team that puts their clients first. They offer both business insurance and personal insurance from all of the major carriers.


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