Business owners, non-profit leaders and municipal risk managers may be annoyed when their agent brings up cyber liability insurance. They've heard it before, now they're hearing it again, and who would want or bother to hack their systems anyway?
You should certainly remain vigilant against being sold coverage you don't really need. When new insurance products come to the market, a certain degree of skepticism is understandable. You may figure that you've never had the coverage before, so why bother now? While this reaction makes a certain amount of sense, it is wrong. Moreover, it could be dangerous.
Experts estimate that only 15-30% of businesses in the U.S. and Canadian markets currently possess cyber liability insurance. Meanwhile, rapid growth in cybercrime continues unabated. Here are just a few high-profile stories from recent weeks:
- U.S. Investigations Services, a company that conducts third-party background checks, suffered a data breach affecting at least 25,000 U.S. government workers, including undercover operatives. The information stolen included Social Security numbers, education and criminal histories, birth dates, as well as information about the workers' spouses, relatives and friends.
- Supervalu, a conglomerate of grocery stores, experienced a breach of customer credit card data impacting more than 1,000 of its retail locations.
- Community Health Systems, a health care network with more than 200 hospitals in 29 states, said its data systems were accessed by hackers who stole information on 4.5 million patients.
- UPS announced that 51 locations were affected by a malware breach, which allowed hackers access to more than 100,000 credit card transactions.
- PlayStation's gaming network was taken offline by a distributed denial of service attack.
- Onsite Health Diagnostics, an independent provider of employee health screenings, announced its third data breach of the year, with 4,000 individuals affected this round.
- 1.2 billion assorted electronic records, including website login details, were reportedly stolen by a Russian cybergang known as CyberVors.
Cyber liability insurance is not some add-on or a frill for businesses with extra cash to spend. In the 21st Century, it's an absolute necessity.
Learn more about how you can protect your business.