data loss insurance

Cyber Risk and Network Security

Companies now rely on computers for virtually every aspect of their business. Sensitive documents, which are stored on files on company computers, need to be protected. While precautions are generally taken to protect this information from being stolen, there are those whose sole purpose is to hack into these systems. They aim to profit, or in some instances, to gain notoriety. Either way, such a breach can have a serious negative impact.

Having data loss insurance coverage helps to protect your clients who have fallen victim to unauthorized access to, or theft of, confidential and personal information. Security breaches have become big news for businesses both big and small, and this will continue to cause companies to suffer significant revenue losses, along with damage to the organization’s reputation.

It’s unfortunate that the world of network connectivity has only served to significantly increase exposures to the threat of cybercrime and increased network security protocols are required to prevent these types of potential losses.

Internet advances have changed how businesses operate

The ability to readily store and share data across interconnected networks has created new efficiencies in sales and marketing, data access and retrieval, and vendor relations. But while the benefits of using Internet-based and other technologies are numerous, the risks are all the greater.

Theft of private information, manipulation of sensitive documents, computer viruses destroying data, possible damage to hardware, and computer fraud are the kinds of exposures, which previously didn’t exist, that are now all too common.

An Internet hack or attack has become a foregone conclusion. The increase in cyber risk in recent years has also increased an awareness of the vulnerability of our Country’s infrastructure. Sadly, the ease with which these cyber-terrorists can infiltrate any business entity, government facilities included, is quite evident. The impact of this type of computer attack will no doubt create more viable solutions on how to combat this serious problem.

Few companies have the necessary security to protect them from these internal attacks, which are often perpetrated by the very people that they have put their trust in, namely employees and vendors. Disgruntled employees are often behind many of these cyber crimes. In addition to data loss insurance, it’s recommended that your clients implement a formal security program to protect against these hackers and extortionists making use of malicious code and viruses to cause costly issues.