NJ Business Insurance and Cyber Theft Issues

Data breaches, network security, and identify theft are terms that many small business owners are dealing with on a regular basis. The fact that these types of exposures are running rampant in businesses across a wide spectrum are a concern that needs to be addressed. Fortunately, cyber coverage is available in the form of NJ business insurance coverage.


Over the last few years it became apparent that even small businesses were being infiltrated, simply because they were easy targets due to a lack of proper security, and as long as companies using computers and storing private information lack the proper remedies, they will continue to fall prey to hackers and thieves bent on stealing private information for resale.


More and more companies have added cyber liability policies to their business insurance package in order to address all levels of risk. Meanwhile, the insurance industry continues to address these exposures with various types of cyber liability coverages. Whether the attack comes from external sources, which is often the case, or if an employee or someone with access from within commits these crimes, this coverage is essential to businesses at risk.


Cyber theft can be extremely costly


Once a company is the victim of a breach, and information is obtained, the cost involved in informing clients, customers, and employees can be substantial. The thieves will likely sell any credit card numbers, social security numbers, and other valuable personal info to resellers who turn around and sell them in online forums or to other thieves. They will often encode the numbers onto blank plastic cards in order to obtain funds through ATM machines or purchase goods over the counter.


Every business owner is at great risk


Data breaches occur that can affect millions every year. Malicious threats, such as Malware, Spyware, and “Phishing” often create exposures and the results can be quite damaging. Non-malicious threats pose serious concerns as well, and issues like lost, stolen or misplaced laptops and smartphones, use of company computers by unauthorized users, and internal network sharing/configuration errors can be equally responsible for a breach.


Companies are required by law to notify customers in their database whenever a breach is suspected, which will often bring further damage to a company in terms of reputation, along with a loss of customer confidence. When an owner factors in the expenses to defend against hackers, they can see just how costly this can be. You simply cannot afford to be without NJ business insurance that deals specifically with cyber liability issues.

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