The internet represents a fantastic opportunity for businesses to reach out to consumers. Websites and social media bring two way communication to a whole new level. And technological advancements let businesses give their consumers access to their own files with the ability to do more for themselves.
With great advancements in information technology and computers come great advancements of hacking and fraud, which can also result in cyber-attacks and risks such as privacy breaches.
What is a Privacy Breach?
It is a loss or theft or accidental publishing of personal information of either your staff or your customers. The most well-known example occurred in 2011 when Sony’s customer database was hacked. While your business likely won’t experience a targeted attack as large as Sony experienced, privacy breach can still easily occur. Most often breaches happen when papers are lost, unsecured laptops go missing, unencrypted databases online are hacked, portable hard-drives getting stolen, or employee error. There’s not a business today which does not have some cyber risk or the possibility of a privacy breach. If your business deals with sensitive client information privacy breach insurance is a must.
An Ounce of Prevention…
Since most companies have websites, or at least some kind of online presence, things like malicious code, denial of service or web-based attacks can be a problem. This is especially true if a company gets most of its new business from online leads or sales. Here are some ideas to lessen the potential of Cyber Risk to your company:
1. Secure and restrict access to data – Not everyone needs access to your company’s information. Whether in hard (paper) or soft (electronic) copy form have that information available only to those who need to know.
2. Password protection and encryption – Sensitive information should be encrypted. There are many technologies available to encrypt your information.
3. Secure remote access – Today many business allow their employees to log into the office remotely. This means those connections can be vulnerable. Make sure you use passwords and if the data is particularly sensitive, such as medical files then consider using a Virtual Private Network (VPN).
4. Anti-virus, anti-spyware software – Run all your computer systems through enterprise-level anti-spyware/virus software. Also ensure that you have adequate firewalls in place to control access to the internet from within your organization.
5. Update software regularly – Software changes happen rapidly. Your computer systems might have the best anti-virus software available, but it’s only as current as its last update. New malware programs are discovered daily so making sure your protective programs are current will help to maintain the integrity of your data and network.
What can privacy breach insurance or cyber security insurance do for your company?
There’s lots to consider when looking at cyber risks. A lot of insurance companies offer consulting before a breach occurs. This is to help businesses understand and set up their response strategy in the event of a privacy breach. Things like incident response planning, notification letters, agency and government contact information.
Cyber risks are fast becoming the number one risk in the insurance world. And if your company has a data breach here are some things you can expect from your data breach insurance policy: Damage assessments, remediation consulting, media response support, notification consulting and more.
Cyber risk insurance policies can help cover expenses related to: sending out notice of a breach to your clients or customers, hiring a public relations firm to help with media attention, having a forensic investigation of the incident, and more.
Being prepared is the first step, but having insurance coverage for data breach or cyber risk is the second.
Interested in Cyber Risk Insurance or Privacy Breach Insurance?
Contact us here if you would like more information about how we can tailor cyber insurance policy to your company’s needs. Would you like a quote on your business? Click here.
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Thanks for reading.