January 17, 2014

If it can happen to a company like Target it can happen to you

It does make one think.  If a company with the resources of retail giant Target can have such a large-scale loss, what's to stop my little company from going under if something similar would happen to me? Regardless of size, if your business collects personal identifiable information you are at risk for a cyber-liability loss.

There are certainly risk management strategies available. Using virus protection, firewalls and encryption can help mitigate risk, but these techniques do not totally remove your exposure to a cyber-event. The average estimate for a privacy breach is a loss of $204 per record. Could your company withstand that kind of loss? Insurance carriers are becoming more aggressive with pricing and coverage for this type of exposure. We are seeing policy forms written to contemplate all kinds of exposure to loss including cyber extortion, loss of digital assets, security event costs, employee privacy liability coverage and media liability coverage. If you take credit card information what happened to Target can happen to you. What are you doing to prepare against a major loss because of a hacker?