NJ Business Insurance and the Cyber Threat

The reason there are so many articles being written about cyber liability, or data breach liability, is because these crimes are happening at an alarming rate. It affects a lot of different businesses, and is not limited to companies providing information technology (IT) support service to others.

Data breaches have become quite common for every type of company, and for that reason more firms are purchasing cyber liability policies as part of their overall NJ business insurance package. Most business owners understand that cyber gaps exist in most basic insurance policies. For example, a Commercial General Liability policy doesn’t provide coverage for data breaches and other related cyber exposures.

Cyber breach can affect local businesses, big and small

One important thing to remember is that not all hacks are external. The threat can just as easily come from within. A few common causes of cyber liability and data breach losses include:

  • Computer hacking
  • Employees throwing away sensitive information
  • Employees using or selling sensitive information, and
  • Lost or stolen computers and other devices

There are many instances where a company stores old computers in a closet and eventually disposes of them without a second thought. But failure to adequately wipe data from devices, or not getting proof that recycled devices were, in fact erased, can lead to sensitive information falling into the wrong hands.

For small and mid-size businesses in New Jersey, two of the biggest concerns regarding cyber attacks or data losses are the possibility that a cyber attack will steal your business assets, or equally as bad is the likelihood of severe damage to your clients or others from whom you have collected private information. These are both major exposures and, as long as cyber thieves can find ways to garner this valuable information, your business remains at risk.

The costs can add up pretty fast, and the reputational damage is something you can ill afford. Make cyber insurance a part of your NJ business insurance plan moving forward.

 

 

photo credit: #BAhackaton – día 1 (11) (license)