Earlier this month Microsoft ended its support of Windows XP. What this means for its users is that they will no longer be provided with security updates. The result is that anyone still using this system becomes vulnerable to cyber attacks. Given what has recently transpired with Target and other retailers experiencing breaches in their systems, we all recognize that this is certainly serious business. More important, however, is the large numbers of companies, educational facilities, hospitals, medical and other professional establishments, retailers and restaurants as well as financial service firms still using this operating system. These organizations now face serious potential consequences unless they upgrade to systems that still receive support.
In addition, another way to ensure that sensitive information is protected is to have the right cyber liability insurance in place. That way, should a breach occur, you have some protection against potential losses.
Why should you consider purchasing cyber liability insurance?
First, the insurance protection, while necessary, is only one of the benefits being offered with this coverage. Additional benefits include: acknowledgement of the exposures, resources to assist in pre-loss planning as well as strategies to avoid losses altogether.
The bottom line is that if you handle any sensitive data such as credit card information, social security numbers and other personal identification numbers, medical information as well as financial and/or banking information, there is no doubt that you absolutely need to have this coverage in place. If your company is using laptops, mobile devices or other portable media, such coverage is no longer optional.
Some of the coverages offered in a cyber liability policy are:
• Legal & Forensic Services
• Crisis Management & Public Relations
• Notification Expenses
• Good Faith Advertising Expenses
• Services For Impacted Individuals (credit management, help lines, etc.)
• Per Claim Deductibles From $1,000-$2,500 and with limits of $10,000 to $100,000.
Keep in mind that the number of data breach incidents is on the rise and the regulatory requirements which need to be met when each occurs can be very significant in terms of the fines imposed by regulatory authorities. We urge you to discuss this coverage with your insurance agent to give you the confidence that you are operating a business that can continue to enjoy the reputation you have built over time, demonstrate to your customers how you value their business, and restore loss of consumer confidence should a loss ensue.
By Karen Skoler, CPCU