Error Omissions
Error Omissions
Submit your information below so we can contact you with a FREE quote
[All fields are required.]
Actual Annual Revenue:
Verify:
=
I have read and agreed to theTerms & Conditions
Error Omissions
Error Omissions

Congress Debates Cyber Security Measures as Data Exposures Rise


Congress Debates Cyber Security Measures as Data Exposures Rise

At the end of April, the House of Representatives passed the Cyber Intelligence Sharing and Protection Act in an effort to improve the security of the nation’s computer networks. The House bill facilitates the swapping of threat data between private companies and the National Security Agency and other government departments. This measure is at odds with a Senate bill that would concentrate cyber security efforts in the Department of Homeland Security and would require companies to bolster security for critical infrastructure, such as electrical and water systems. The White House prefers the Senate bill. Both bills have their opponents, including businesses that see the steps involved to improve security as burdensome, and the ACLU, which is concerned over the sharing of private and sensitive information with the government.

Regardless of where you stand on the proposed measures, as a business owner, cyber security is a growing issue across all industries. Cyber attacks threaten the economy at large and the privacy of individual data. What’s more, it’s costly to American businesses.

U.S. companies in 2011 were estimated to spend more than $130 billion as a result of data breaches, according to the Ponemon Institute, a cyber security research organization. This is more than triple what companies spent combating breaches in 2006. Each data breach results in companies losing about 3.7% of their customers, on average, according to the Ponemon Institute.

What’s more, companies may have to beef up their systems and staff to find and solve the problem, which increases expenditures. These same companies have to then let customers know if their information has been compromised, and they have to spend even more to prevent the breach from happening again.

At Axis Insurance Services, we’re beginning to see more companies realize the need for taking further measures to mitigate exposures to data breaches. We’re also seeing a significant uptick in businesses realizing the need for Cyber Liability or Privacy coverage, and we’re expecting to see an increase in demand for securing these policies for our clients.

There are different types of policies available which can be designed to cover a business’  response costs, including legal fees, notification, credit monitoring, IT forensics, and call center operation. Other coverages that may or may not be triggered after the response phase include Broad Network Security and Privacy Liability, which defends the insured if a claim or lawsuit is brought against them. Defense coverage is available as a result of regulatory action, including payment of fines and penalties. Also available is first-party coverage to protect a company that suffers some type of attack or loss of information for data recovery or recreation. A significant asset for companies, the data, if lost or corrupted or the server fails, can be a substantial cost for a business. A policy can be designed to respond and pay for the data to be recovered or recreated. The other component is business interruption, which covers loss of income associated with a company’s network going down.

We can discuss the various type of cyber policies and enhancements available and what makes sense for your company. Give us a call at (877) 787-5258.

Comments

comments

Blogged on: May 8, 2012 by Mike Smith
Error Omissions
Error Omissions
Submit your information below so we can contact you with a FREE quote
[All fields are required.]
Actual Annual Revenue:
Verify:
=
I have read and agreed to theTerms & Conditions
Error Omissions
Error Omissions