GT Insurance Blog

Insurance problems and cures

Applying for Data Breach/Cyber Liability Protection

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Data Breach, Cyber Liability, rising issues, increasing danger to your company, changing insurance requirements.

Here are some of the questions you have to answer to have insurance protection; and they are good questions to ask yourself in advance of a loss for risk management and company protection.  (We reviewed materials from Risk Placement Services Inc., CNA Insurance, Chubb Insurance, and several other insurance carriers in preparing this.)

Here’s the sample of simple questions from a generalized application:

1) Do you have a firewall on your computer network?

2) Do you have anti-virus/malware software on all computers? How is it updated?

3) Do you have computer and information security policies which all employees and third parties must follow?

4) Are employees allowed to store or download any personally identifiable information to laptops or removable storage media?  How do you control it?

5) Do you use wireless networks?  If so, is your security at least as strong as WPA, and requires two-factor authentication? (Ask your IT service provider.)

6) Do you have physical protection for computers and, for that matter, physical records and old computers?  (Did you ever go through an office and see a cubicle piled with old computers?  How secure is that?)

7) Does your IT service provider have Cyber Liability insurance?  Do they have Errors & Omissions insurance to protect you if they make a mistake?  Does your contract with your IT service provider make you an additional insured on their policy?

One thing the insurance companies ought to ask is how well you maintain passwords.  (No names, 10 or more characters, use all the characters on keyboard, no sharing passwords, change them once in a while, etc.)

If you’d like to discuss this, and what insurance is available in New Jersey, please give us a call at 800-548-2329.

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