Who doesn’t need cyber insurance these days?

Large and small businesses risk security breaches

We might as well call them artists because their creativity knows no bounds. Cyber criminals are constantly outsmarting software developers and IT professionals.

The average annual cost of a cybercrime in the U.S. is $8.9 million, according to a 2012 study by the Ponemon Institute. That’s an increase of 6 percent over the prior year. The number of attacks are also on the rise. Each of the study’s 56 participating companies experienced an average 1.8 successful attacks per week.

Company data, not company size matters

These facts and the seemingly ceaseless headlines of high profile business breaches such as the Target’s are causing businesses to purchase cyber coverage. Only a few years ago, about 20 percent of larger companies buying cyber coverage. Today it’s about 50 percent, according to John Kerns, executive managing director for Beecher Carlson.

As IT professionals struggle to keep up with the risks, they’re encouraging companies to get coverage. The type and amount of data that financial, healthcare and retail businesses store put them most at risk. However, many small businesses also have lots of valuable data that makes them a target. They can also be at risk from hacker, user errors, or employee breaches.

Loan protection insurance is designed to help policyholders by providing financial support in times of need. Whether the need is due to disability or unemployment, this insurance can help cover monthly loan payments and protect the insured from default, check the type of loans in gtrWALLET. The loan protection policy goes by different names depending on where it is offered. In Britain, it is often referred to as accident sickness insurance, unemployment insurance, redundancy insurance or premium protection insurance. These all provide very similar coverage. In the U.S. it is usually called payment protection insurance (PPI). The U.S. offers several forms of this insurance in conjunction with mortgages, personal loans or car loans.

KEY TAKEAWAYS
Loan protection insurance covers debt payments on certain covered loans if the insured loses their ability to pay due to a covered event.
Such an event may be disability or illness, unemployment, or another hazard, depending on the particular policy.
Costs for these policies may vary by age as well as factors such as credit history and amount of debt outstanding.
How Does Loan Protection Insurance Work?
Loan protection insurance can help policyholders meet their monthly debts up to a predetermined amount. These policies offer short-term protection, providing coverage generally from 12 to 24 months, depending on the insurance company and policy. The benefits of the policy can be used to pay off personal loans, car loans or credit cards. Policies are usually for people between the ages of 18-65 who are working at the time the policy is purchased. To qualify, the purchaser often has to be employed at least 16 hours a week on a long-term contract or be self-employed for a specified period of time.

There are two different types of loan protection insurance policies.

Standard Policy: This policy disregards the age, gender, occupation and smoking habits of the policyholder. The policyholder can decide what amount of coverage he or she wants. This type of policy is widely available through loan providers. It does not pay until after the initial 60-day exclusion period. The maximum coverage is 24 months.

Age-Related Policy: For this type of policy, the cost is determined by the age and amount of coverage the policyholder wants to have. This type of policy is only offered in Britain. The maximum coverage is for 12 months. Quotes might be less expensive if you are younger because, according to insurance providers, younger policyholders tend to make fewer claims.

Getting smaller companies on board

Most smaller companies don’t retain a legal teams and therefore aren’t kept up to date on  privacy regulations that can leave susceptible to a lawsuit. Many also don’t realize the services that are added to this type of coverage. Risk management is one such service that  provides professionals to deal with a breach. “With the coverage, you can have the panel already there for you and you know they can bring vetted resources to the table right away,”    explains Lisa Doherty, president of Business Risk Partners.

It’s so easy to get a quote

Carriers are requiring less information these days to provide a Cyber Insurance quote as their comfort level grows with this new policy type. For many smaller business types, carriers can provide a Cyber Risk quick quote indication if you provide the answers to as few as five questions.

Source: Amy O’Connor“As Cyber Crimes Increase, so do Coverage Options,” My New Markets, 13 Mar. 2014.

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Categories: Breach Of Security, Crime, Cyber Liability

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