Technology has become one of the most (if not the most) important piece of a business’s day-to-day operation.
Whether a company is taking any sort of payment or not, there are vast amounts of information stored on its database. That information can range anywhere from something minor, such as a name of the client, up to more vital information such as driver’s license number, date of birth, and even social security number. Imagine what someone on the Internet can do with just a few of these pieces of information. It can prove to be detrimental to an individual’s everyday life.
So what kind of insurance can businesses purchase to protect themselves in the event their computer systems and databases are hacked and their clients’ information is stolen?
The answer to that question lies in a relatively new product on the marketplace called, “Cyber Liability Insurance.” Cyber liability insurance is designed to help businesses in the event they have their own (or clients’) personal information stolen.
How Cyber Crime Works
When most people think of cyber crime, they think of identity theft. Unfortunately, it’s not that simple.
As a business owner, you need to think of not only the information you keep on file but also the access points to other databases. For example, let’s say one of your distributors allows you to log into their website. When you sit down and login, you now have access to more secure information than the general public. What happens if a hacker has placed a virus on your computer system that follows the path you’ve taken. Now, the hacker has gained access to private information on your distributor’s secured website. Since your company’s computer system is where the virus originated, you can be liable for damages done to your distributor’s website and information stolen.
How to Protect Your Business
As farfetched as it may sound, it’s happening more and more every day. Our lives are moving to a paperless, digital world. With that transition, each day we place more personal and vital information online that can be easily accessible to the wrong kind of people.
Protecting yourself is important, but protecting your clients and customers is of paramount importance. Take the steps necessary to keep information (and your business) safe. Regularly evaluate your risk, implement solid security protocols, and consider a cyber liability insurance policy.
Contact Kincaid Insurance for a Free Quote
If you own or operate a business in Indiana, Kincaid Insurance is here to help you reduce the risk of cyber liability. Contact us for a risk-free quote today.Request a Free Quote