As millions of members of the public, patients, government and military workers have discovered their individual and sensitive information being stolen or exposed over the past couple of years, the increase in liability for businesses and governments has elevated also.
Today, this niche market in the insurance business is exploding as more than 30 insurance carriers have entered the marketplace to offer coverage for possible information breaches.
With digital storage and the transfer of information expanding as a vital component of performing company in today’s economy it has turn out to be a reality to many that they've a responsibility for how a person’s private and financial information is taken care of. Also, more and more customers who've suffered from a information breach are starting to launch lawsuits for compensation of their loss.
As well, it isn’t only viruses, phishing emails, or hackers that put consumer’s data at risk. It also is lost or misplaced files by employees or worse mishandled trash and recycled materials and devices. It is clear that a security breach that results in a client’s data being stolen and used can lead to liability claims and also government penalties for corporations.
Cyber liability insurance policies are becoming a new business opportunity for insurance agents, brokers and carriers because the risks of expensive data breaches very much extend to small and midsize businesses as well. Indeed, it is companies outside the Fortune 1000 that could find it very difficult to recover from a data breach without the right insurance.
While cyber insurance coverage become a request by many businesses and business owners, the industry itself hasn’t quite found a standard type of coverage or policy to provide. The types of coverage offered are all over the map. These policies can cover everything from helping reconstitute data to the public-relations expenses needed to repair a damaged reputation. Other ways to avoid data breaches is to utilize tools like usb encryption.
Today, this niche market in the insurance business is exploding as more than 30 insurance carriers have entered the marketplace to offer coverage for possible information breaches.
With digital storage and the transfer of information expanding as a vital component of performing company in today’s economy it has turn out to be a reality to many that they've a responsibility for how a person’s private and financial information is taken care of. Also, more and more customers who've suffered from a information breach are starting to launch lawsuits for compensation of their loss.
As well, it isn’t only viruses, phishing emails, or hackers that put consumer’s data at risk. It also is lost or misplaced files by employees or worse mishandled trash and recycled materials and devices. It is clear that a security breach that results in a client’s data being stolen and used can lead to liability claims and also government penalties for corporations.
Cyber liability insurance policies are becoming a new business opportunity for insurance agents, brokers and carriers because the risks of expensive data breaches very much extend to small and midsize businesses as well. Indeed, it is companies outside the Fortune 1000 that could find it very difficult to recover from a data breach without the right insurance.
While cyber insurance coverage become a request by many businesses and business owners, the industry itself hasn’t quite found a standard type of coverage or policy to provide. The types of coverage offered are all over the map. These policies can cover everything from helping reconstitute data to the public-relations expenses needed to repair a damaged reputation. Other ways to avoid data breaches is to utilize tools like usb encryption.
About the Author:
Oliver David writes and contributes articles for Lok-it.net and other blogs on subject matter like his usb flash drive review.
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