Liability Concerns Regarding Internet Security

More small business owners are becoming alarmed by the prospect of falling prey to cyber theft. This is certainly the new reality, even for them. While their concerns are not on the same scale as some corporate giants, their businesses can still suffer significantly if hit with a cyber breach where sensitive information is stolen. These types of assaults are not limited to companies providing information technology (IT) support service to others, and business owners have access to Indiana cyber security insurance to address these concerns.

Proper protection requires purchasing an insurance policy that specifically addresses cyber crimes and/or data breaches. Each company has the benefit of being able to design its own coverage tailored for their exposures, so it’s important to consult with an agent familiar with cyber liability in order to determine what is the right type of coverage.

Common causes of cyber theft

Cyber crimes can happen in a number of different ways. Fraud and identity theft, computer hackers who invade the company system from outside, employees who inadvertently or improperly dispose of sensitive information, lost or stolen computers and other devices, information warfare, phishing schemes and spam email. Another concern is having employees who use or sell sensitive information for monetary gains.

Common types of cyber crime include hacking, online scams, identity theft, attacks on computer systems and illegal or prohibited online content. The effect of cyber crime can be extremely costly for victims, and not necessarily just for financial reasons. Private, digitized medical records have become a target with most hospitals and other organizations now implementing electronic health records for ease of access. The downside is that it centralizes the records in databases, many of which are poorly secured.

For most small and mid-size businesses, a cyber attack will allow thieves to steal valuable business assets that could potentially cripple these operators, and without Indiana cyber crime insurance in place to cover attacks of this nature, the losses won’t be recoverable.

Another major exposure is damage to clients, employees or anyone else who has allowed the company access to private information. This leads to the damage to the reputation of these companies that were compromised. Cyber security incidents involving third parties has proven to be harmful to businesses of all sizes, and their financial impact on a company has the potential to result in twice as much damage.

 

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Insurance Risk Advisors