Rising Demand For Cyber Liability Insurance Coverages

“Cyber liability coverage has evolved from just liability insurance for information technology companies to coverage that nearly every class of business should have if they don’t already.”  Many businesses including banks, restaurants, retailers, and medical offices are unaware of the great security technology exposure they face. 

In addition, the internet is not the source of all data breach problems.  Lower tech breaches commonly arise that are caused by leaving password notes out in plain view, theft of laptops, and improper disposal of medical records.

“Recent state laws require companies that have experienced a security breach to notify all customers that could be affected by the breach that their information has been compromised, even if the information hasn’t been used.  In most cases, the notification also includes an option of one year credit monitoring services and a new card or account number for customers.”

More than 40 states have data breach notification laws and insurers expect a federal cyber notification law at some time in the near future.  The average per customer cost for a security breach is $15 and this does not include loss of reputation. 

Source: http://www.mynewmarkets.com/articles/107853/security-breach-notification-laws-reinforce-need-for-cyber-insurance