How Does Cyber Insurance Protect a Business from Catastrophic Losses?

How Does Cyber Insurance Protect a Business from Catastrophic Losses?

Security threats, data breaches, and hacks seem to be a daily occurrence. In recent months, the Federal Trade Commission sued and won a judgment against Wyndham Worldwide Corporation alleging that data security failures led to three data breaches at Wyndham hotels in less than two years. Court records indicated millions of dollars in fraudulent charges were processed from credit card information obtained by overseas hackers.

As professional cyber hacking incidents multiply, many people have considered and purchased Cyber Insurance. Whether a business is a Fortune 100 company or a small business, protecting customer sensitive information is of key consideration for internal procedures and when hiring third party vendors.

Most businesses use outside vendors for services such as; merchant processing solutions, IT support, hosted websites, and an accounting system. What happens when a trusted corporation is attacked by Cyber pirates? Data is at risk and customer information may be compromised.

Large or small, businesses in the healthcare industry, IT services, Credit Card Processing, Law, and Accounting fields are responsible for taking reasonable care of the data managed.

What are the requirements and concepts of cyber policy standards? In the case of Columbia Casualty Company v. Cottage Health System, 2:15-cv-3432 (C.D. Cal. 2015), a Risk Control Assessment asked a multitude of questions including three of the following:

  • Do you check for security patches to your system at least weekly and implement them within 30 days?
  • Do you replace factory default settings to ensure your information security systems are securely configured?
  • Do you have a way to detect unauthorized access or attempts to access sensitive information?

As personal injury attorneys in the Fort Lauderdale area, we are aware that there is no shortage of cyber attacks. Therefore, it is critical to understand the security of your data and the vendor relationships that may increase the exposure of sensitive information.

Consideration for Cyber Insurance is that of the business owner working closely with their insurance provider to determine what safeguards are in place and examine weak areas of possible exposure based on the managed data required by the policy holder.

Cyber attacks affect mainstream markets every day. Talk to your insurance agent to ensure the protection of sensitive customer records and financial data of your business.

The Blaut Weiss Law Group represents victims in all types of accident, injury and insurance dispute cases throughout Florida. We are dedicated to providing our clients with personal service and aggressive representation. At Blaut Weiss, P.I. means that we are personally interested in every client and every case. If you are unsure of your legal rights, call our law offices at 954.634.1800 to evaluate your circumstances.