Few businesses today operate entirely outside of the cyberworld. It is truly a brave new world, and it is changing every day. Listing the new cyber developments since I finished college would be as never-ending as the internet itself... including, by the way, the internet itself in fact.
So how do businesses today protect themselves against the ever-expanding industry of spam development, pop-up ads, and items much more foreboding?
Flexible and nimble cyber risk insurance is attempting to meet the need head-on, or at least to keep pace. Traditional liability insurance for your business is simply inadquate. Loss of client privacy or data could spell the end of your business without proper protection.
So what Are the Solutions?
"To increase their survivability, companies big and small are taking on the cost of premiums for Errors and Omissions (E&O) insurance and "cyber protection" coverage", according to Jack Germain of Ecommerce Times. E&O insurance can cover liability due to product failure or when damage to occurs to intangible property, such as proprietary data and trade secrets, Germain says.
Another quickly developing expansion of coverage against business losses involves fines and penalties from regulators or contractual fines from credit card companies when merchants are not in compliance with PCI (payment card industry) standards, according to Tom Srail of Willis in Cleveland.
Another insurance option to utilize in protecting against cyber liability includes a newly evolving product called, cyber liability insurance. For more details see this article at Integrogroup.com.
Discussion Point
For small insurance agencies to large-scale multi-state insurers; you face this liability concern daily. How have you addressed it for your business? How do you aide your clients in addressing cyber infiltration concerns?
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