Cyber Liability Risk Management
June 26, 2020
Cyber Liability – An Every Day Occurrence?
Cyber liability exposures seem to be reported more and more every day. The latest cyber attack was reported on September 23rd in the Insurance Journal regarding the Home Depot Inc.’s data breach. That very day in our office we had received a “junk email” claiming to be American Express and speaking of an unauthorized charge to Home Depot and asking for you to follow a link to correct the problem. The sophisticated web user knows this to be a “phishing” expedition and not to fall into the hacker’s trap. You should hit the “Delete” button immediately! How many though are not so Internet savvy? Could it be one of your employees? Perhaps, it is just one of those days for a veteran employee who was not thinking clearly before clicking where they should not. Disaster!
If this incident were to occur in your office, the breach of security for your firm could be costly. States are reacting swiftly to data breach issues with sweeping legislation affecting almost all businesses. Recently enacted laws require notification to all customers affected by a breach, whether or not their information has been used maliciously. In most cases, the notification also requires an option of one year credit monitoring services and a new card or account number for customers. Costs can be as much as $250 for each individual affected by the breach and the average is around $188 per individual. So multiply that figure by your number of customers, and possibly even past customers if you still maintain their information, and you can do the math!
Standard General Liability products and even Crime Liability products may leave gaps or insufficient coverage for this type of loss. Let our experienced licensed representatives at The Armstrong Company Insurance Consultants help answer your questions on Cyber Liability Insurance and help you find the coverage you need. Contact us today or Request a Quote online to find out how to protect your business and your future. We are here to work for you!