Data breach liability concerns stemming from cyber attacks costs companies billions of dollars a year. Since cyber crimes are not covered by traditional liability insurance policies, many local organizations need Carmel cyber risk insurance, alongside new policy features in order to protect from incurring expenses detrimental to the health of their companies.
The risks related to data security and privacy issues are something most companies need to quickly address and continuously work on ways in which to mitigate these problems. The issue has fast risen to the top of the list for many businesses, but in fact the problem has now been going on for quite some time. The reputational risks alone are a prime concern as well.
High-profile breaches often make headlines
In November of 2011, the Sony Corporation had the names and credit card information of at least 77 million PlayStation accounts stolen by hackers. In January of 2012, online shoe retailer Zappos lost information on more than 24 million customers. The following year, the New York Times and other news organizations revealed that Chinese hackers infiltrated their computer systems and networks for several months, and Capital One has experienced several intrusions on their online bank service systems. Most recently, Equifax had a huge breach and Yahoo just revealed that all 3 billion accounts were hacked back in 2013!
The biggest issue, perhaps, is that becoming a victim to one of these breaches means that these companies must now worry, not only about the financial damages incurred but also about keeping their reputations intact. While most companies have business interruption coverage as part of their property policy, that coverage is only for tangible risks such as fire, flood or windstorm, not for hackers or the threat of a virus taking down their entire network.
Carmel cyber risk insurance is the best way to be properly covered for this type of exposure. There really is no other policy available that is designed to address cyber risk and the fallout from these types of attacks. Some estimates suggest that less than 30 percent of companies have the cyber risk or data security policies, but that number should continue to see rapid growth as more businesses become targeted.