Many businesses are advancing quickly through use of technology. Your business may now keep paperless records, share files over the internet, or use integrated software to upload client information. Regardless of the complexity of your business, technology serves an integral role in keeping your company organized and growing. Information technology serves to help you and your clients with efficiency, accuracy, and processing.
In fact, one of your business' most valuable assets is likely your customers' information, which is often maintained as electronic data. Your clients' personal information is sensitive and, if exposed, could cause severe financial harm. Data breaches are very common, and though you may work hard to maintain your security software, use encrypted files, or ensure password protection, there is always risk associated with software use. A cyber security insurance policy is a prudent solution to protect your business from financial ruin.
The steady rise of cyber crime and the media's increasing attention to it has raised awareness and concern from the public. Federal and state laws and regulations have increased a business' legal responsibility to adequately safeguard private information in response to emerging risk associated with online transactions and identity theft. If your company hosts, stores, shares or transmits proprietary or confidential data, the business is exposed to cyber crime, as are companies that outsource these tasks to a third party administrator, or conduct online transactions, publish electronic content, or have an attractive profile for a cyber thief, such as a business in the medical, financial, or IT industries.
Company insiders or employees commonly trigger cyber breaches. Whether an employee intentionally steals the private information, or simply makes the mistake of misplacing a laptop, tablet, or smartphone in an unsecured location, the financial loss can be devastating. Typical losses will include hefty costs to notify those whose information is compromised, as well as injury to the reputation of the business that is responsible. Moreover, the valuable data is often corrupted, costing a business tens of thousands of dollars to recover, and the legal fees, court costs, and associated damages can put a company out of business.