Cyber attacks and data breaches have been creating liability concerns for some time now and the costs to companies now totals billions of dollars in expenses. Insurers have worked hard to create policies to protect business owners from incurring expenses when their defenses break down. The many risks related to data security and privacy issues are something that most companies agree needs to be addressed and as a Country we must work on ways in which to defend against these problems.
The fact is that hackers have been going about this for years now and it’s a major area of risk that has become a serious issue for companies nationwide. The need for Orlando cyber liability insurance for local businesses has become of the utmost importance. While the operational and reputational risks are of prime concern, fears related to data security on every level, including our government, have soared in recent years.
Small companies face the same risks as high-profile companies
Many business professionals talk about high-profile breaches that have made headlines in recent years, but small companies, while not often sensationalized on the nightly news, are bearing the brunt of the attacks because they are often less prepared to deal with cyber hacks. The medical industry has been hard hit and personal and confidential records and information is being leaked on a daily basis.
One of the biggest issues, perhaps, is that once you become a victim to one of these breaches your company must now worry about keeping its reputation intact. Cyber security insurance has existed as a highly specialized niche product for over a decade now and it is becoming a key product because practically every company does some type of online business. In recent years, the number of insurers offering such policies has grown tremendously because companies are realizing that they really aren’t properly covered for this type of exposure.
For example, most companies have business interruption coverage as part of their property policy, which is for tangible risks such as fire, flood or windstorm, but not for cyber crime or the threat of a virus taking down an entire network. This is a different form of business interruption and requires a policy that specifically addresses these exposures. Don’t be one of those companies without Orlando cyber liability insurance because after an attack occurs it will be too late. Speak to your insurance agent today.