Cyber Insurance Can Limit Agent Losses Caused By Online Attacks
|January 16, 2014
The risks title companies can be exposed to in this Internet era are limited only by the imagination of the would-be thieves, virus designers and hackers out there, according to Frank Laisch, senior vice president/director of marketing at National Insurance Solutions.
He said cyber-risk insurance can help limit the financial damages businesses suffer after an attack or other damaging cyber events. Here is some food for thought when it comes to storing data in the cloud and where information could be vulnerable to an online attack.
- Unauthorized wire transfer interception: If you send or receive wire transfers, you could be targeted for an attack that intercepts the transfers and allocates the money to an unauthorized individual.
- Losses and expenses due to theft of client, company or personal data: Not only can the theft of data result in losses to you and your clients, it can also create expenses when you are forced to notify clients of the breach.
- Cloud computing risks: If your business stores important data in the cloud, you have little control over the safety and security measures taken by the storage network. And since companies will also be storing data, in the same facility and on the same equipment, it might increase your chances of being exposed since hackers might have to hack the whole cloud to get the data they want.
- First-party and third-party risks: You, your clients and your vendors can all suffer financial losses due to your company’s cyber-risk exposure.
- Virus transmission: Viruses can be expensive to remove and result in expensive privacy breaches and data losses.
- Loss of intellectual property: It can be very financially damaging if your proprietary business ideas get into the hands of another person or another company.
- Business income lost due to network loss or damage: If you can’t do business when your network is down, then you will lose money if downtime occurs.
- Business income lost due to computer issues: Your network doesn’t have to crash before you lose income—simple computer issues can throw your workday into a tailspin.
Small businesses are no less exposed to these risks and losses than a large company and may be even less likely to financially recover without this important coverage.
TIAC’s Underwriting Manager Announces Cyber/Privacy Risk Insurance Program for Title Professionals