November 04, 2015
Cyber Tip of the Week: Insurance is the Best Defense
Insurance is not the first line of defense for cyber security. It is absolutely necessary, but it is important that your company’s best practices support possible leaks and security threats. Also, insurance is not an excuse to let your cyber security become lax. For tips on best practices, read last week’s Cyber Tip.
Over time, cyber insurance will continue to evolve as it becomes apparent what systems are under attack. With every new form of technology, be it an app or a new device, IT experts and insurance companies learn more about the data risks. From a litigation perspective, verbiage and definitions are being updated, changed and created in order to argue properly about these high-tech topics. The most important thing, from the perspective of the insurance company, is to increase awareness around this very real threat.
If you are unsure of your cyber security preparedness, ask yourself these questions:
- What would you do if your customer data was compromised?
- Many states require companies to notify their customers in the event of a security breach. How much would you be forced to pay in notification expenses?
- What if your customers or vendors initiated a lawsuit against you?
If you are having difficulty answering these questions, it’s time to assess your cyber security coverage beyond General Liability.
Avalon offers protection when you're held liable for cyber security threats. Coverage can be provided for e-theft, copyright or trademark infringement, e-vandalism, destruction of data, privacy notification expenses, crisis management and more. Find out more here.