Despite many recent reports involving cyber breaches to large corporations, most experts agree that the worst is yet to come. Cyber crimes continue to be on the rise, and cyber liability is one of the top ten threats to businesses across the US. This risk remains among the top three biggest risks, with many corporate entities placing it at number one.
Most experts agree that IT security isn’t enough to address these types of risks. Some comprehensive information and network-security policies and procedures need to be properly implemented, tested, and updated on a regular basis to ensure that the proper risk assessment has been made and a risk management approach must be in place. Your orange county business insurance should include some type of cyber coverage.
Reputational damage also needs to be addressed
The loss of reputation and brand value is another major issue, one that has also become among respondents’ primary concerns. Obviously, a company experiencing a loss of personal data of customers and employees equates to a real lack of trust in that company’s ability to secure such important information. Having this type of risk is likely to have a cumulative negative effect.
Business owners have to come to terms with the fact that they constantly face serious exposures to cyber and privacy breaches. Confidential information and personal data are seen as a very valuable company asset and one that we must strive to great lengths to protect. Traditional insurance against theft does not cover data breaches from hackers stealing digital information, and most insurance plans don’t cover the costs incurred from lost or stolen sensitive data.
Data theft can cost millions of dollars when it occurs and to be safe, companies with confidential and protected health information should purchase standalone products to transfer this risk and protect their balance sheet. A lot of huge corporations like Equifax and Yahoo were high profile victims, but small companies have long been targeted as well.
Performing business dealings online is risking exposure to cyber liability concerns and individual information online has become more public, just as sensitive business information has become more open to exposure as well. A company that sells products online is at serious risk and needs business insurance in orange county to counter the problem properly.