Portage County Legal News

Cyber security insurance essential for 21st century business

KEITH ARNOLD
Special to the Legal News
Published: August 22, 2017

With more and more businesses - small and large - operating in the cloud, and marketing campaigns closely tied to online social media, cyber security insurance has never been more of an asset for the business class.

Local insurance giants Nationwide and Grange both offer the coverage to their commercial clients and educate consumers on the importance of such policies.

"Cyber coverage is quickly becoming a necessity for businesses of all sizes," said Mike Winner, president of Grange's Commercial Lines Division, in a prepared statement. "Not only does our coverage offer a variety of options for customers, but we've also partnered with the best in the industry when it comes to protecting businesses."

Coverage offers limits ranging from $25,000 to $1 million, first- and third-party coverage and data breach-response planning and reputation management from IDT911, an industry leader in cyber security.

Here's a breakdown of the local firm's cyber security coverage:

• First Party: Data breach expense coverage for items such as notification letters to customers and call handling and reporting.

• Third Party: Third-party liability coverage including media wrongful acts, • Ransomware and Extortion: Protection against criminals who install malware on personal devices and demand payment to remove it.

According to U.S. House Small Business Subcommittee on Health and Technology data, 60 percent of small businesses close within six months of a data breach, the press release stated.

Business and customer data is constantly at risk and the consequences of a breach may be severe and expensive, Grange officials noted. The firm's partnership with IDT911 allows policyholders to build an effective data breach response plan, gives guidance on the best breach response strategy and helps prevent regulatory sanctions or fines.

Nationwide's cyber security efforts are a result of its partnership with Hartford Steam Boiler. The insurance company warns business owners and operators that cyber security insurance often is excluded from a business's general liability policy, which covers bodily injuries and property damage resulting from company products, services or operations.

"Cyber insurance generally covers your business's liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver's license numbers and health records," according to marketing information on the company's website.

Coverage also includes data compromise protection, which includes credit monitoring and services provided by a public relations firm, identity recovery protection to aid victims of identity fraud restore their credit history and protection against damage caused by a virus or computer attack, as well as helping with the cost of restoring and recreating data.

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