Cyber Liability Insurance in Massachusetts
Gilbert Insurance Covers Your Cyber Liability Insurance Needs in Massachusetts, North Shore MA & Greater Boston
“Barracuda,” “FireEye,” “Threat Stack” and “AlienVault” may sound like monikers for characters out of a video game, but they are actually the names of some of today’s hottest cyber security companies, who sure know how to conjure up fear and anxiety in business owners, like you.
It is undeniably true that, no matter the size of your company, we all now work in a business environment that is much more vulnerable to data breaches. However, there are also some very effective, relatively simple, and not-so-intimidating things that you, as a small to mid-sized business, can do to protect yourself, your employees, and your company from the equally ominous-sounding dangers these companies like to warn you about, like ransomware, advanced malware, automated threats, and other forms of cyberattacks.
Gilbert Insurance is always happy to help businesses in Reading, North Reading, Stoneham, Woburn and throughout Greater Boston and the North Shore learn how to best protect their business (and personal) data. In fact, we have shared a list of Specific Tips for Businesses in our recent blog on Cyber Security which, when implemented, can give you peace of mind that your email, web applications, remote access, web browsing, mobile Internet, and network perimeters, whether on premises or in the cloud, are more secure.
Smaller businesses may not have the resources to spend on cyber security that a large multi-national company has, but you can still establish very effective safeguards against hackers by:
- Creating secure passwords that include a mix of numbers, letters, and symbols and using different passwords for different accounts
- Installing antivirus and anti-spyware software on all your computers and keeping up with critical updates that fill gaps in previous versions of the software
- Knowing exactly what information needs protecting, including data about your customers, employees, and supply chain and distribution partners
- Talking to your employees about their responsibility to keep the company’s business data safe
- Being selective with your payment systems and partnering with a bank or payment processing service that you are certain uses the most up-to-date anti-fraud systems
If you’ve already taken the time to assess your areas of cyber risk and created and implemented what you believe to be an excellent plan to address these weaknesses, you should have 100% confidence that you will never experience a data breach, right? However, in today’s highly connected world, in which you and your employees are constantly sharing sensitive information across computers, tablets, iPhones, and, unfortunately, sometimes on social media, no business can say with certainty that they will never have a data breach incident.
For this reason, many businesses in Reading, North Reading, Stoneham, Woburn and throughout Greater Boston and the North Shore consult with Gilbert Insurance on securing the proper Cyber Liability Insurance Coverage for their specific risks. Many of our clients are relieved to hear that this type of insurance is actually fairly simple to understand and secure.
To make it clear what this coverage does, we like to break it down for businesses into the two parts of most cyber liability insurance plans: First Party Coverage and Third Party Coverage.
When Does First Party Coverage Apply?
If a small to mid-sized company has a data breach incident, it is typically personal information that is compromised, such as credit and debit card, social security, bank account, and driver’s license numbers. Your business would be legally required to respond to the loss, theft, accidental release or accidental publication of any of this information by:
- Notifying employees, clients, customers, partners, and anyone potentially affected
- Investing in systems to remedy the situation internally
- Paying any additional extra expenses related to responding to the investigation of the breach or subsequent claims
First Party Coverage covers related expenses, including mailing notification letters, credit monitoring services, public relations, and the cost of other actions you need to take to handle the breach and comply with state and federal regulations.
When Does Third Party Coverage Apply?
Should a data breach incident happen at your company, you could be found negligent and, you probably guessed it, find yourself in a lawsuit. Third Party claim scenarios include:
- Breach of Privacy
- Misuse of Personal Data
- Defamation or Slander
- Transmission of Malicious Content
With the proper Third Party Coverage in place, your defense and liability expenses are covered in the event you are sued because of a breach.
Cyber Liability Insurance coverage continues to evolve and expand based on the needs of businesses. For example, these additional coverages are now available and your Gilbert Insurance agent would be glad to discuss if they are applicable to your situation:
- Business Interruption and Extra Expense, for loss of income from a cyber attack
- Cyber Extortion Threat, which provides coverage for extorted money from a credible threat
Whether you are a mom-and-pop shop with 10 employees or a business with 100 or more employees, every day you are probably handling people’s personal information and using information technology in some way. Gilbert Insurance strongly encourages you to plan for a potential breach of this data and a cyberattack on your systems in order to avoid significant interruption to your business and your livelihood.
Contact us today to learn more about Data Breach and Cyber Liability Coverage for your business.
Gilbert Insurance has served the cyber liability insurance needs of businesses like yours in Reading, North Reading, Stoneham, Woburn and throughout Greater Boston and the North Shore, including:
- Accountants or other Financial Services
- Medical Practices and other companies in the Health Industry
- Mortgage Brokers
- Retail Stores