melloInsurance

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Cyber Insurance

The Cyber world, am I exposed?

With the reading week / winter break underway. There is nothing better than kicking your feet up and reading a blog about cyber coverage. Am I right? (I know I am). Well let’s begin.

What are the risks?

With business becoming more and more prevalent on the internet. We are exposing ourselves online, by giving personal information to the general public. Whether it is through social media (Facebook, Instagram, LinkedIn), through emails or through website data collection. Businesses are needing to do most of their collection through online portals to compete with other online companies. Therefore, with this data, it is possible for hackers and other con-artist enthusiasts, to access your data and start on their process to leverage it against you.

Some malware through spam emails or other pop-up websites, lock down your computer and charge you a “ransom” for you to access your data again. This “ransomware” can cost a lot of money, and if that data is valuable, you may have to pay it to obtain it. There is very little you can do once this ransomware locks your computer. Talk to your IT guy to see what you can do to prevent this, otherwise, the data may be lost.

Other exposures are through the methods of identity theft and credit card fraud. There are so many ways people can do this, that it is almost impossible to prevent it. If you have any suspicions whatsoever, close your browser or email and go directly to the source to see if the “phishing expedition” is actually legit or not. Anytime people ask you to re-confirm your identification or your credit card, you should have your guard up. If you don’t filter through these types of requests, it can end up costing you a ton of money to recapture your identity and prove that you are who you say you are. This maybe sounds easy, but through people’s past experiences that we have seen firsthand, you are pretty much guilty until proven innocent and the process is grueling.

How can I protect myself?

These examples are a very small sample of what is possible online, and the methods people use to hack into your online world. We can’t prevent everything. As fast as we learn about it, someone is hacking a different way. However, we can protect ourselves from the loss that occurs when someone does attack you. Cyber coverage is available with almost every insurance company. Through your personal home, farm or business policies, you can purchase cyber coverage to protect your personal identity and data as well as the information stored by your commercial business. A data breach could strongly affect your business, by attacking the stored customer information on file. There are many implications to this, including: costs to reach out to your clients to inform them of the breach, the costs to recover the data or pay the ransom along with all the public relations costs that will occur, due to the breach. It is one thing when the data breach results in the loss of your information, it is a completely different ballgame when they steal customers information under your care and control.

What does this data and cyber coverage actually insure me for?

Every company has different variations of this coverage; these are the highlights:

  • Costs of recovering from the computer attack, such as: recovery of data, repair of systems, loss of business and public relations expense.
  • Protection in the event of a third party suit or claim from policyholders first party triggering event.
  • Forensic IT and legal consultation expenses
  • Expenses related to notifying affected individuals and regulatory authorities
  • Fraud alert and case management services to affected individuals
  • Costs to recover data and restore systems
  • Payments and assistance in responding to Cyber Extortion
  • Covers online fraud that results in direct financial loss

With this online world, there are so many opportunities to grow your business and stay globally connected. However, with that ability to connect with others, it gives online criminals the ability to take information out of your “back pocket” without you knowing. Give us a call if you want to learn more or have this coverage added to your policy. Make sure you are doing your part to protect yourself, your family and your customers.

Is there a reason I have identity theft coverage?

Remember a couple weeks ago when we spoke about the importance of having someone checking your home while away on that warm vacation that you “won” by taking that telemarketer survey?  Well, unfortunately that trip resulted in having your information getting stolen and your personal identity being compromised. Credit cards were forged and now you have charges in your name that shouldn’t be there!  Why oh why was that telemarketer so convincing? Now you are sitting in a world of hurt and anguish, you are confused and have misplaced emotions, and wondering how you will escape the clutches of this unfortunate event.  You grab your favorite blanket, lay down on the sofa and proceed to have yourself a good cry as you wonder what to do.


Suddenly it dawns on you and you stop your panic.  The clouds of broken trust and fear begin to roll back with the glorious blue sky and warm sun shining down on this situation.  You remember that your insurance provider has got you covered! Most companies offer a minimum of $10,000 of identity theft protection that will help you get your life back in order.  This coverage will kick in to cover the costs of getting new documents produced, as well as kick in to cover unauthorized credit card charges that might exist. This coverage can be used any time you suspect that your identity has been compromised.  The claims process is started simply by contacting your broker who will open up a claim on your behalf with your insurance company. Submitting a claim for this type of loss may cause a change in premiums due to discounts being affected, so be mindful of that fact if you should decide to pursue this option.


Identity theft protection.  Who knew you would ever need such a coverage?  Your broker did that’s who! Once this whole disaster blows over and what was lost has been returned, make sure you take the time to thank your broker and maybe even bring them that Iced Cap that they love so much.  Brokers know that they often look like the hero, but deep down they are just regular people that want to help and see your problems through.

No matter what happens in the future, keep your broker close.  You never know when you will need them to help you out of the proverbial hole you find yourself in!

 

How can we be ready for the criminals of the 21st century?

Back in the 1800’s, if there was a crime, you walked out of the saloon and handled the matter in 10-step quick draw. “This town ain’t big enough for the two of us.” You gotta love those old westerns.

Crime itself hasn’t changed, we still have issues today. The difference is the way the criminals carry out the crime. Stealing by pick-pocketing or by stealing off the shelf is less common today as there are cameras everywhere to catch you in the act. Criminals have become more and more creative with how they think up and carry out their crime.

Some things you can do to prevent such issues from happening to you or your business is:

  • Lock everything up – Whether it’s the front doors, your tool trailer, the cash in the til, or any private documents or accounting information. All this information is valuable and can be used by criminals for identity theft issues or to steal financial information for their benefit. Locking up your belongings may be required by insurance companies to cover the theft claim. (Depends on the items that were stolen. Such as tools, jewelry, etc.)
  • Security System – Having cameras and motion detectors in your house or business can not only scare off people prior to entering, but can also set off alarms or catch them in the act to make sure they don’t do it again or prevent others from doing it again. By having a third party monitor your system, you can potentially receive a discount on your insurance premiums for taking these measures.
  • Computer Data Security – There is a ton of financial information available on our computers today with the ability to bank online or do any financial purchases online. It is important to understand your cyber security on your computers, make sure the websites you are using are secure and that you have good security and fraud protection on your credit cards.
  • Iron Bars – This is an old fashioned security measure. If you have a lot of glass in an area that gets broken into more often or you store goods that are more commonly stolen; putting steel bars in the windows can prevent criminals from breaking and entering if they cannot enter.
  • Good Lighting – Having your house and business well lit during the night, helps keep people away as well as they are less prone to break into a building in a bright light to avoid getting caught.
  • Removing Valuables – Storing valuables overnight can also create potential for break-ins. Removing them from the premises can also help avoid future issues.
  • Proper Insurance – It is always a good idea to carry insurance on your buildings and your contents / inventory. Theft and vandalism claims can end up costing a lot of money. You will want to prevent as much of the small issues as possible as you will not want to claim every situation. However, you will want insurance available if a major loss does occur.

Most of our insurance policies now include coverage for criminal issues such as theft, vandalism, riot, identity theft and cyber security. Cyber security coverage is a new to the insurance industry and may need to be added to your policy if you require this coverage for data intrusion or other potential cyber threats. As this is becoming more of an issue, we recommend you look into what exposures you or your business may have to these types of issues.

Crime will always be an issue in society. Despite our best efforts to see the good in all of our fellow men and women, we will always have problems. By taking a proactive approach you can prevent any future problems from occurring before they start. By carrying an insurance policy, you can be insured for the problems and claims that you weren’t able to predict and prevent. Contact us today for any questions or to look into how we can design a policy to meet your needs.

How do we keep ourselves protected in an online world?

Do you ever log onto Facebook and the first thing you see is an advertisement for a pair of shoes you just were looking up the night before? Fellas? We all know you were eyeing up those new pumps (Christian Louboutin…?). Well the reason is, social media and many online companies are collecting data on everything you view. The data that from your device is then analyzed by companies like Google and then sent back to your device giving you information that is relevant to what you were just looking for. Google’s whole business model is to provide you with the most accurate information in the quickest amount of time.

This is insane! I mean, you don’t even have to type “Blingy 4 inch heels for wedding” into Google anymore without it already having advertisements for those shoes on your facebook timeline. The data and analytics that is being processed every second is astounding. So with that all being said, this is all very cool, but how do we keep ourselves protected from people who want to use that information against us online.

Many banking and online payment websites have added security measures to make sure it is indeed you logging into the website to make a payment or transfer. They also have guarantees that if you are hacked or someone accesses your account, that they will refund your money. So please contact your banking institution for their information on these types of scenarios.

For businesses who store data and privacy information on their computers at work, you need to make sure you are taking similar precautions. Having proper internet security software on your servers and computers is crucial. This software can be frustrating at times, as they can hold up day to day operations to keep added security in place. So talk to you IT analyst and make sure your software is going to be compatible with the security provider.

Next, you want to keep everything backed up, preferably off-site. What does this mean? You can do a few things. Some people manually backup their information onto a hard drive or USB flash drive daily and take it home with them. Others have IT departments that can backup information online in their database overnight. Either of these options are good as long as you’re able to restore your data in a quick and efficient manner if an attack or crash were to occur. You don’t want your business to be disrupted for too long. Having these measures in place beforehand will save you a huge headache in the future.

One more thing you can do, is purchase a cyber insurance policy. Many companies are offering added cyber security endorsements onto business policies to help protect people/businesses from these types of risks. These policies include coverages such as:

  • Coverage for cyber liability if your computers are hacked or a virus attacks your system causing personal or financial information to be leaked and someone brings action against you for the leaked information.
  • Payment of the costs to repair your systems if they are damaged and any losses of revenue you may suffer as a result of this damage
  • Coverage for data held ‘in the cloud’
  • Coverage for regulatory actions or investigations as a result of a privacy breach
  • Coverage for threats and extortion conducted online
  • Data Recovery Coverage

The internet is one the most amazing inventions of our generation. However, like anything we must treat it with respect and take precautions when working with it. Identity theft, viruses, hackings, malware emails all happen on a daily basis. We don’t want this to happen to you, so hopefully this information can help you prepare ahead of time for when these situations arise.