Cyber Liability Trends for 2017

Cyber Liability continues to be a major issue for businesses in 2017. In today’s data-driven social media world, businesses of all sizes have had a cyber-attack or data breach. Statistics show 39% of all cyber incidents affect businesses with fewer than 100 employees.

  • Human errors and systems glitches caused nearly two-thirds of data breaches globally in 2015, while malicious or criminal attacks are the costliest everywhere at an average of $257 per compromised record. 2015 Cost of a Data Breach: Global Analysis, Ponemon Institute and Symantec, June 2015
  • More than 282.4 million identities were exposed overall during 2016. Deliberate breaches mainly targeted customer-related information, primarily because it can be used for fraud. A Chronology of Data Breaches
  • Techmedics, our technology business partner, offers cybersecurity tips for small businesses that can help prevent cyberattacks.

Some Items to Consider for 2017

  • With more companies beginning to store information on the “cloud” there will be more universal breaches causing greater losses.
  • Cyber Liability insurance is a real option providing value added coverage and services.
  • Industries most exposed are; healthcare, medical, retail, financial institutions, technology and hospitality,
  • Cyber recovery costs are rising, even with new technology.
  • Individual states will be beefing up mandatory reporting laws and imposing fines for lack of reporting.
  • New technologies will allow cyber-attacks to come through smart phones and tablets.
  • Small businesses may be the most prone, as they have the least protection. (Check out these cybersecurity tips for small businesses that can help prevent cyberattacks)

Cyber liability coverage (for data breaches) has evolved from just insurance for information technology companies to coverage that nearly every kind of business should have – if they don’t already. From retailers, banks, contractors, distributors, restaurants and medical offices, many businesses are unaware of the severe data breach exposure they face. In short, any business not making an effort to protect personal private information is seriously out of step with the emerging landscape of privacy law. We can provide your firm with the right combination of pricing and coverage.

The Armstrong Company Insurance Consultants knows that our clients have many unique insurance needs and we are ready to discuss yours with you.   Call to speak with one of our helpful team members about your particular insurance needs, contact us today.

 

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