05.06.10
Cyber Security Liability Insurance
Hackers are pervasive, and businesses must remain vigilant to protect their data from attacks. One data security firm reported that 38% of its data-breach investigations in 2009 occurred at hotels, the largest-hit industry. By contrast, financial services account for just half of that rate. Surprisingly, when a security breach occurs, it takes an average of 156 days before the business discovers it.
Cyber Security Liability insurance coverage is available at reasonable rates to protect against credit card identity theft with limits up to $5,000,000. For a company, not only will it cover the loss of digital assets, but it will provide expenses for public relations, damages and service interruption. Customers are also protected. Notification of individuals whose credit was compromised is included, plus any legal costs and a year of credit monitoring for each individual affected.
No one expects a cyber security breach. But proper insurance can mitigate the significant financial and public relations losses if it happens to you.
From Wall Street Journal, March 18, 2010 issue.