Oct 2, 201308:56 AMOpen Mic
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Cyber liability: Not just for technology businesses anymore
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Some of you may be wondering about third-party credit card processing services, but many of these service agreements severely limit or completely transfer the risk for unauthorized access back onto the business itself. If you have one of these agreements, you should review it in detail.
The traditional insurance products this sandwich shop purchased — such as property, general liability, and crime — do not cover data breach or other cyber exposures. In fact, the Insurance Services Organization, which authors the majority of policy language for traditional insurance carriers’ products, is introducing revised policy language to further clarify that the policies do not provide coverage for cyber exposures.
To address this — and pay for the notification costs and potential lost goodwill resulting from a cyber attack — some form of “cyber liability” coverage should be purchased. Something to be aware of is that unlike traditional insurance products, cyber insurance products have neither standardized policy form wordings nor definitions, meaning not all policies are created equal. A knowledgeable insurance agent/broker can help identify the exposures faced by your business and craft a policy to address the gaps/concerns.
Steve Squires is the president of Hausmann-Johnson Insurance, one of the area’s largest insurance agencies. He has spent a lifetime counseling businesses and individuals about minimizing risk and maximizing peace of mind.
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