Millions of people interact on social networks like Facebook, Twitter, and LinkedIn every day, and with its opportunities and benefits, social media also brings a tremendous amount of risk due to cyber theft and cyber attacks. This pales to the dangers that small business, large corporations, and even our government faces daily.

 

As businesses and individuals navigate this risk landscape, they face a wide range of evolving liabilities including privacy, security, and theft of intellectual property. The ability to hack into computer systems and steal valuable private and confidential information has been a growing concern since computers and smartphones became part of our everyday lives. Local businesses need to invest in Carmel cyber risk insurance to address these threats.

 

Companies reeling from cyber attacks

 

By now we all realize that there is a very real exposure companies face, and must take into account, regarding the digital threat environment that exists today. Businesses are now commonly faced with concerns stemming from their responsibility to consumers to remedy a breach, and (in the case of a public company) the fiduciary responsibility to shareholders to disclose a cyber incident when it occurs.

News of major corporations being victims of cyber theft and security breaches is nothing new, compromising everything from personal information to private and public business records. Cyber thieves target these businesses for the purpose of profiting by accessing funds and records, and selling them to individuals, or even foreign agencies.

 

Cyber liability insurance is designed to provide protection against unauthorized access to company files and records, attacks waged on a company’s firewall or network security, destruction of data or corruption stemming from a virus, threats of cyber extortion, network business interruption; and loss of income resulting from cyber attacks.

 

Government agencies not immune

Amid a rising number of high profile data breaches within their own systems, our government is stepping up its scrutiny of cyber security. The alleged hacking of last years US election at the hands of the Russian government has set a precedent and has led to increased calls for legislation and stricter regulations.

On the local level, despite the fact that cyber risks seem to be a serious threat, some companies are still reluctant to purchase Carmel cyber risk insurance, which may prove to be a poor decision.