The quick answer is no, your business won’t ever be completely safe from hackers. But you can and should take steps to reduce your risk, and you can transfer your liability to a third-party underwriter. Insurance is your last line of defense.
That was the message presented by The Unland Companies at their recent E2E workshop.
Bill Martin, president of Gateway Underwriting Agency, speaks on “Cyber Liability and Data Security.”
Cody Kretsinger, a professional hacker from CIAN, describes some of the methods hackers use to find weaknesses in your business’ security, and some of the ways you can protect yourself and your business or institution.
The only secure computer out there is one that is completely encapsulated in concrete and is at the bottom of the ocean.
–– Cody Kretsinger, CIAN
• Existing insurance policies do not account for web-based and other technology related liabilities.
• Small organizations are hackers’ favorite target: 85 percent of data breaches occur at small businesses. (Source: VISA)
• About 60 percent of small businesses victimized by cyber crime shut down within six months. (Source: study cited by U.S. House Small Business Subcommittee on Health and Technology)
• The average cost of legal defense for a data breach was $582,000, and the average cost of a settlement was more than $2 million. (Source: 2012 data breach insurance claims study done by Net Diligence)
• Risks may include things like data theft, intellectual property liability claims, employee misconduct and many other things. You need a data security policy, data encryption and employee training – but you also need an insurance policy crafted to cover your specific cyber liabilities.
• Policy premiums through Unland are as low as $500.
Here are two of the case studies presented at the E2E workshop:
A year after Dr. Smith fired the employee who stole the laptop, he was still paying the fines. The laptop was recovered after it was destroyed by the terminated employee. Dr. Smith had to pay $75,000 to hire a firm to conduct forensics in order to determine all the patients affected by the breach. Dr. Smith’s lawyers estimated it would cost between $25,000 and $50,000 to send out notification letters and provide credit monitoring to all the patients. An additional $75,000 was spend hiring a public relations firm to manage the publicity surrounding the event.
A regional heating and refrigeration contractor had a contract with a large national retailer. A virus infected the contractor’s systems, providing details of each key stroke to hackers. Hackers used the virus to obtain network credentials for the large retailer’s system, stealing tens of millions of credit card records. The retailer was forced to spend millions of dollars to notify affected customers, pay banks for the expense of reissuing credit cards, and pay fines levied by regulators. The retailed also suffered steeply reduced sales figures due to reputational harm. The retailer sued the contractor to recoup some of its losses.
Ready to protect your business? Call your agent or click here to get a quote!