Cyber Breaches Create Serious Liabilities

LA insurance

Technology companies are heavily dependent on the collecting and transmitting of confidential information, which is vital to many different industries. As everyone is fully aware, there is now an increasing demand for more and better network security options to aid in the prevention of cybercrimes by hackers bent on stealing personal information.

However, much of the highly sensitive data is easily compromised, due to a lack of security protocols, as well as criminals who have discovered how to get around firewalls, creating channels to medical, financial, and even top secret government information, meaning all businesses remain constantly under the threat of a cyber breach.

A cyber liability policy, available through LA insurance agencies, is needed in the event that any of this information falls into the wrong hands, causing personal, emotional and financial harm to individuals who had a legitimate expectation of privacy and security when providing their personal information to others. In this climate, fears are running high, and the cost to businesses is reaching into the billions.

Serious lack of security in the transmission of information

The healthcare industry has been hit hard, in part because they lacked the necessary security, but also training was probably not up to standards. With new practices in place, healthcare data can be more easily transmitted from provider to provider, or from site to site, creating higher vulnerability.

Hackers are now able to intercept these modes of communication when information is passed from one provider to another. In order for this data to be secure, appropriate encryption and security standards must be established for all senders and receivers of these files. Websites that have been developed by healthcare organizations for marketing and branding purposes include increasing amounts of information and intellectual property making for more exposure to cyber criminals and cyber theft.

There are some unique challenges ahead, along with some very good potential business opportunities. The difficulty is in maintaining security and ensuring all content remains safe from prying eyes. These exposures will continue to result in cyber liability claims for breach of privacy, infringement of intellectual property rights, fraudulent billing, and numerous other exposures. Cyber liability coverage purchased through LA insurance brokers can aid medical personnel, as well as other business sectors, whenever a breach occurs.