Cyber Liability Insurance
Business Finance
Need about a half or a full page to the essay below;
For my STOW topic I am going to bring up the subject of Cyber Liability insurance. As I am still employed in the risk management field, this is a line of coverage I am familiar with. My company has designed a product for small business owners. Small business owners do not always have a budget for this type of peril and the premium to purchase such coverage can be minimal.
The product that my company offers is designed for revenue up to $100 million annual. This allows for many types of business small to medium to utilize such insurance coverage. Many small to medium businesses deal with sensitive and private information for individuals. As we all know having a breach does not always mean someone with malicious intent is the cause of it. With improper document management and disposal, or a lost laptop, breaches occur.
The Risk Placement Services Cyber Insurance product will protect against unauthorized release of confidential information, violations of privacy rights, intellectual property infringement and violation of state and federal laws. The coverage purchased can include response, extortion, and digital asset restoration. In most cases, coverage can be offered with four questions; any past losses, industry, how many people with access, what protections are already in place. Four quick questions and about $750 can get a standard small business $1 million in cyber liability coverage. Sounds like a no brainer, right? As a small to medium business owner, a data breach may not make the news, but it would tarnish reputation, cause business interruptions, and can be very costly.
So the questions I ask to everyone are the following:
- How would you market this to the small business owner?
- Should this become mandatory coverage when there is a financial loan?
Robinson, S., Collier, R., & Cho, M. (2016, June). RPSCyber.com. Rollings Hills, MI, USA.
