Data breaches, network security, identify theft… these are terms that can leave a bad taste in the mouths of business owners. This type of exposure is running rampant in society today and is a concern that needs to be addressed by nearly every sector of the business community.
After all, these exposures are not exclusive to giant corporations or government agencies; any business that uses computers and stores private information of any kind can fall prey to those who have made it their business to attempt to steal private information for resale. Today, most companies have added cyber liability policies to their business insurance in Rochelle Park, New Jersey to address some level of cyber liability risk.
The insurance industry has addressed this emerging risk with various types of cyber liability insurance coverages. Whether the attack comes from external sources, or is perpetrated by an employee or someone with access from within, this is a coverage that most businesses simply cannot function without.
Cyber theft can be extremely costly to companies under attack
Just last year, federal prosecutors charged five men responsible for a hacking and credit card fraud spree that cost companies more than $300 million, which, at the time was the biggest cyber crime case filed in U.S. history. The five men, from Russia and Ukraine, hid their efforts by disabling anti-virus software of their victims and storing data on multiple hacking platforms, prosecutors said. They then sold card numbers to resellers, who then sold them on online forums or to other thieves known as “cashers” who encode the numbers onto blank plastic cards.
Small business owners face similar concerns
Data breaches can occur that often affect millions of records each year. Unfortunately, it is usually the smaller businesses that are most at risk. Malicious threats such as Malware, Spyware, and “Phishing” can create exposure, and the results are quite damaging. Non-malicious threats are just as dangerous, and problems like lost, stolen or misplaced laptops and cell phones, improper protection of company computer systems against unauthorized users, and internal network sharing/configuration errors can be equally at fault.
Companies are required by law to notify customers in their database whenever a breach is suspected, which adds even more concerns; mainly damage to a company’s reputation and the loss of customer confidence. When an owner factors in expenses needed to defend their business, the entire affair becomes quite costly. Without business insurance in Rochelle Park, New Jersey for cyber liability protection, things can turn sour very quickly!