Over the past 12 months, the number of insurance carriers offering cyber insurance has dramatically increased. We have also seen a sharp decline in cyber insurance premiums.
Bedford Park, IL (PRWEB) August 07, 2017
Cyber/Privacy insurance, or Privacy coverage, is a type of insurance designed to cover a business in the event that data from a firm’s electronic network is exposed or stolen, and/or encrypted and held for ransom by a hacker.
Stewart Levin, CPCU, Hallberg Commercial Insurors, Inc. explained, “Cyber insurance is intended to cover a variety of liability (3rd party) and property (1st party) losses that result from when a business falls victim to the malicious intent of a cyber attack.”
Levin continued, “A cyber insurance policy covers a variety of expenses associated with data breaches, including: notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, professional assistance in reconstructing data and securing the IT System, business interruption and loss resulting from identity theft.”
No business, municipality, nor organization is immune to cyber crime. It is estimated that 50% of all small and midsized business have suffered at least one cyber attack in the past 12 months. According to CNBC, cyber crime costs the global economy over $450 billion and 2 billion personal records were stolen in the U.S. in 2016. (1)
Levin explained, “Over the past 12 months, the number of insurance carriers offering cyber insurance has dramatically increased. We have also seen a sharp decline in cyber insurance premiums, thus making it more affordable for business of any size to protect themselves from the substantial costs of a cyber attack.”
Cyber insurance policies cover liability arising from website media content, as well as property exposures from: (a) business interruption, (b) data loss/destruction, (c) computer fraud, (d) funds transfer loss, and (e) cyber extortion (f) public relations assistance in managing and maintaining the company brand and customer good will.
“It is ideal to work with a licensed and experienced commercial insurance professional that takes the time to understand the business’s needs. The goal is to set up the right coverage based on any potential cyber liability exposures,” added Levin.
Levin provides the following tips businesses can establish to prevent a cyber attack:
1. Develop a fully operational plan to deal with an online attack. This plan should include a robust procedure for off-site system data back up and periodically testing the back up for validity.
2. Purchase and maintain security systems or build-in security measures to protect the business.
3. Employee education is key. Teach all employees how to avoid unwittingly exposing network data during a hack. Human error can leave a company open to additional risk. Additionally, recruit people trained to prevent attacks.
4. Purchase a cyber insurance policy. While this is an additional insurance expense, it is a fraction of the costs of defending, notifying, monitoring, investigating, and managing the cyber liability crisis.
About Hallberg Commercial Insurors, Inc.:
Hallberg Commercial Insurors, Inc. was founded in 1986 to provide commercial insurance and risk management consultation to businesses in the Chicagoland area. Headquartered in Oak Brook, IL. Hallberg Commercial Insurors, Inc. has consistently grown over the past 30 years to become a predominant agency in the Midwest. Hallberg Commercial Insurors, Inc. offers a complete portfolio of insurance products for business insurance, group health and benefits, personal insurance, and financial services.
Hallberg Commercial Insurors, Inc., 120 W. 22nd Street, Oak Brook, IL, (630) 574-2202, http://www.hallbergcommercial.com
Sources:
(1) https://www.cnbc.com/2017/02/07/cybercrime-costs-the-global-economy-450-billion-ceo.html