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Archive for July 2012

Cyber Liability 2

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Cyber liability, or data breach liability, is not limited to companies providing information technology (IT) support service to others.

What are some of the causes of cyber liability and data breach losses?
* Computer hacking.
* Employees throwing away sensitive information.
* Employees using or selling sensitive information.
* Lost or stolen computers and other devices.
* Failure to adequately wipe data from devices, or not getting proof that recycled devices were wiped.

For small and mid-size businesses in New Jersey, where your primary business is not providing IT services, think of two big problems from cyber attacks or data losses.

On one side you have the possibility that a cyber attack will steal your business assets. If you don’t know that you have insurance protection against that, you don’t.

Another major exposure, and perhaps larger for most small companies,  is damage to your clients or others where you have collected private information. Insurance for cyber liability due to release of that information is more complex and relatively uncommon. It’s out there and if you need advice, give us a call at 1-800-548-2329.

Examples of small businesses that have an exposure like that and probably don’t have coverage yet:
1) A small bakery collects children’s birthday information so it can send out coupons for free cupcakes. Looking just now at a great local bakery, it’s got 3,700 likes on Facebook. What happens if someone gets into its computer? Does a local bakery even know that it is required by law to warn the people whose information was stolen?
2) A local auto repair shop has a lot of information passing through. The owner collects credit card info, may see driver licenses, has home addresses and phone numbers. All of those are necessary, and big problems if they get out of the repair shop and into criminals’ hands.

A quick thought: Did you know that cyber liability insurance coverage is highly variable from one insurance carrier to another?

And not just in what limits they allow or how much they charge. The actual coverage is variable. This is not a settled field of insurance so each company is crafting its own list of what’s covered and what is not. This is important. How broadly your insurance carrier crafts the wording, or interprets claims can make a huge difference if you actually have a claim made against you.

While this is still evolving, at a minimum have your insurance advisor show you the coverage in your existing policies. If you can’t get a straight answer, call us for advice.  Or click here to make contact with us or to start a quick quote.

What Cyber Liability or Data Breach Liability insurance may provide:
* Costs to notify clients as required by data breach laws.
* Legal advice on incident response.
* Forensic investigation to identify the problem.
* Costs of credit file monitoring for victims and potential victims.
* Defense and penalty costs from violations of privacy laws.

Written by gbwinsurance

July 13, 2012 at 12:43 pm

Posted in Uncategorized

After the disaster – Commercial Property Insurance

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When you have a large property loss, do you have enough insurance to clean up and prepare your site as well as to replace the building?  Will your business survive the event?  Here are some steps to help y0u prepare, and to increase your change of coming back from disaster.

  1. Local laws, ordinances, and building codes can affect your ability to repair or rebuild. 
  2. The laws may require you to tear down the remainder of the building if it is significantly damaged.
  3. Debris from an older building may be regulated by hazardous waste laws.
  4. If the building is more than a few years old, new building codes can force you to spend more than simple replacement cost.   As examples: interior and exterior doors may have to be changed;  hallway widths may have to be altered; stairway requirements may have changed; fire suppression systems may have to be upgraded, or installed if you did not have them before.  
  5. In the event of a widespread disaster, a hurricane for example, prices for building materials and labor usually rise because so many building owners are trying to rebuild at the same time.
  6. Even if your building sustains little damage, what insurance coverage do you have if damage to buildings near your business blocks access? 
  7. What coverage do you have for power failures?

Most of these questions can be addressed in advance by talking with your local municipality as well as with your insurance advisor.  Call us at 800-548-2329 for advice or click here for more detailed disaster planning advice from our web site. 

On the topic of disaster recovery, here’s an IT provider (IT Radix) who we think does a great job for their clients.  They were taken down by a goose flying into their power lines!  Click here for their story.

Cyber Liability

leave a comment »

For small and mid-size business, think of two big problems from cyber attacks.

On one side you have the possibility that a cyber attack will steal your business assets. If you don’t know that you have insurance protection against that, you don’t.

The Wall Street Journal recently published an article about one attack on one company.  Over $1M gone because the hackers got into a funds transfer process with weak security.

Another major exposure, and actually larger for most small companies,  is damage to your clients or others where you have collected private information.  Insurance for cyber liability due to release of that information is more complex and relatively uncommon.  It’s out there and if you need advice, give us a call at 1-800-548-2329.