Cyberliability Insurance-Can You Afford Not To Have It?

SYKESVILLE, Md. - Jan. 21, 2015 - PRLog -- All businesses are at risk, particularly the small to medium size business who have less sophisticated security measures and are much more vulnerable than the "big guys".

The cost associated with a breach can be tremendous!  There are cost associated with the investigation on who is responsible for the breach.  Also, as of this month, 47 states have privacy laws making businesses responsible for customer data retained on their computer systems.  The laws vary by state, but all have some form of notification requirements included for what a business must do after a breach is discovered.

A small Mom & Pop shop may think they are not liable, but third party credit card processors typically have verbage in their contract that releases them of any liability.  They are only providing the equipment and service, but are not responsible for the security.

The issue at hand is that data breach laws have created additional cost to be burden by somebody.  Typically, whoever lost the information.  Typical Cyberliability insurance has 3 components:

1. Loss prevention or avoidance:  Your IT systems will be assessed for security.  Vulnerabilites will pointed out and solutions identified.

2. Protection against a breach:  This is what we typically think of when we think insurance.  If customers credit card information is lost.  It provides funds for notification and credit card monitoring.  Loss of income could be replaced if your breached and your servers go down or important data is lost.

3. Resolution:  The insurance company, in the event of a breach, will investigate the situation, provide a remedy to the extend possible at the time, and provide solutions to make sure it doesn't happen again.

Cost vary and are dependant on many factors including size of company, industry, volume, and systems in place.  For more information on products available for your company contact us at www.americanheritageinsurance.com.