Cyber Liability Trends for 2014

June 10, 2014

Cyber Liability continues to be a major issue for many businesses in 2014. Is Cyber Liability part of your Business Insurance Program? In today’s data-driven social media world, businesses of all sizes have had a cyber-attack or data breach. Statistics show 39% of all cyber incidents affect businesses with fewer than 100 employees. With the recent Target breach, many individuals and businesses are considering cyber or identity theft insurance. Here are a few examples:

  • Human errors and systems glitches caused nearly two-thirds of data breaches globally in 2012, while malicious or criminal attacks are the most costly everywhere at an average of $157 per compromised record. 2013 Cost of a Data Breach: Global Analysis, Ponemon Institute and Symantec, June 2013 
  • Worldwide, approximately 1.1 million identities were exposed per breach, mainly owing to the large number of identities breached through hacking attacks. More than 232.4 million identities were exposed overall during 2011. Deliberate breaches mainly targeted customer-related information, primarily because it can be used for fraud. A Chronology of Data Breaches, Privacy Rights Clearinghouse, 2012

Some Items to Consider for 2014

  • With more companies beginning to store information on the “cloud” there will be more universal breaches causing greater losses.
  • Cyber Liability insurance is a real option providing value added coverage and services.
  • Industries most exposed are; healthcare, medical, retail, financial institutions, technology and hospitality,
  • Cyber recovery costs are rising, even with new technology.
  • Individual states will be beefing up mandatory reporting laws and imposing fines for lack of reporting.
  • New technologies will allow cyber-attacks to come through smart phones and tablets.
  • Small businesses may be the most prone, as they have the least protection.

Cyber liability coverage (for data breaches) has evolved from just insurance for information technology companies to coverage that nearly every kind of business should have – if they don’t already. From retailers, banks, contractors, distributors, restaurants and medical offices, many businesses are unaware of the severe data breach exposure they face. In short, any business not making an effort to protect personal private information is seriously out of step with the emerging landscape of privacy law. We can provide your firm with the right combination of pricing and coverage.

Safe Harbor Insurance knows business in our communities – you can find our offices in Friday Harbor, and our clients all around WA. As an independent insurance agency, we take pride in reviewing your options with multiple insurance companies and comparing protection and prices to find the best value for your business.

We’re proud members of the Friday Harbor marketplace, and we’re committed to being an advocate for you and your business in times of need.