Which of these scenarios expose your firm to cyber liability?
- Having a hacker breach your computer network.
- Throwing unshredded client documents in a dumpster.
- Leaving your mobile phone or laptop in a cab.
- Selling an old desk from your office without checking to see if there are files inside.
- Allowing employees to write their network passwords on sticky notes and post them at their desks.
Most people would recognize the first situation as a clear cyber liability exposure. In actuality, every one of these scenarios represents cyber liability risk for your company.
One of the primary purposes of Cyber Liability Insurance is to be there to cover you in the event that sensitive client data is compromised in any way. That doesn’t just mean via computer hacks. Client records can also be lost, mishandled or stolen:
- As paper files
- On mobile or portable computing devices
- Using legitimate network passwords that were carelessly exposed
When you have a breach of client data, your company is legally responsible for notifying every client and former client who may have been affected. Laws vary from state to state, so you may have different rules to follow for each state in which your clients reside or do business. Notification costs alone average $30 per record. Multiply that by every client and past client you have and you can easily see why Cyber Liability Insurance is necessary to protect you.
A comprehensive, stand-alone Cyber Liability Insurance policy offers you maximum coverage in case of a breach. The Lockton Professional stand-alone policy includes expert advice to get you through a data breach situation in full compliance with all applicable laws. It also offers you a robust collection of risk management resources supported by expert advice to help ensure your firm’s future cyber security.