Cyberattacks are any company’s worst nightmare, and they have become a more common occurrence. According to a major 2014 study by PricewaterhouseCoopers, the number of detected cyberattacks shot up 48 percent from 2013 to around 42.8 million. The attacks are also costing companies more money each time. As the threat from cybercrime grows more significant, what is the liability and what can companies do to protect themselves from this major threat?
Transfer the Risk
First party cyber liability arises when your own information (such as trade secrets) is breached. Third party liability happens when customer information (such as social security numbers or bank account numbers) is compromised. Privacy and network security insurance, or cyber liability insurance, will transfer risk to protect companies from online security threats.
Do Your Homework
The insurance can be customized to cover or offset the costs related to a variety of situations that arise. Choose a company with a good understanding of the technicalities of information security and make sure that the coverage will dovetail with your existing coverage. A good broker can more or less take the place of a risk management team. Brainstorm any possible first or third party threats and potential expenses and costs, then share the data with the broker. The right specialist broker will be able to be able take very complex data and create the most comprehensive possible coverage.
Cyber liability insurance can save your company from minor damage or major destruction. Understand your virtual threats and take steps to purchase a policy that addresses those risks.