Now that many small businesses have adapted to work from home or remote work situations, the cyber liability conversation must be revisited. Many business owners have a cyber liability component of their information security risk management plan. While companies that issue company computers and laptops probably have internal defense, those computers must stay updated. If companies are allowing personal computers, printers, and other devices, they need to understand that there is a threat there. It is important to talk to your insurance agent now, to make sure that your business is covered for such things as data breach.
Privacy and Cyber Security
With the enormous amount of sensitive information stored digitally, companies need to take the proper measures to ensure this data is never compromised. Ultimately, it is the responsibility of business owners to protect their clients’ data. Failing to do so can result in a data breach, which costs companies billions of dollars every year. Understanding the risks involved with data security can help you prevent a privacy breach.
Know the Risks
The first step in protecting your business is to recognize basic types of risk:
IT Risk Management Practices
To reduce your cyber risks, it is wise to develop an IT Risk Management Plan at your organization. Risk management solutions utilize industry standards and best practices to assess hazards from unauthorized access, use, disclosure, disruption, modification or destruction of your organization’s information systems. Consider the following when implementing risk management strategies at your organization:
Due Diligence When Selecting an ISP
In addition, your organization should take precautionary measures when selecting an internet service provider (ISP) for use for company business. An ISP provides its customers with Internet access and other Web services. In addition, the company usually maintains Web servers, and most ISPs offer Web hosting capabilities. With this luxury, many companies perform backups of emails and files, and may implement firewalls to block some incoming traffic.
To select an ISP that can reduce your cyber risks, consider the following:
There aren’t many federal regulations regarding cyber security, but the few that exist cover specific industries. The 1996 Health Insurance Portability and Accountability Act (HIPAA), the 1999 Gramm-Leach-Bliley (GLB) Act and the 2002 Homeland Security Act, which includes the Federal Information Security Management Act (FISMA) mandate that health care organizations, financial institutions and federal agencies, respectively, protect their computer systems and information. Language is often vague in these laws, which is why individual states have attempted to create more specific laws on cyber security.
California led the way in 2003 by mandating that any company that suffers a data breach must notify its customers of the details of the breach. As of April 2018, all 50 states and the District of Columbia have data breach notification laws in place.
Protection is our Business
Your clients expect you to take proper care of their sensitive information. You can never see a data breach coming, but you can always plan for a potential breach. Contact Chalmers Insurance Group today—we have the tools necessary to ensure you have the proper coverage to protect your company against a data breach. Call 800-360-3000 to review your cyber liability coverage.