Cyber crimes cost businesses $1 trillion in 2008

February 10, 2011

In a recent interview in which the Director of National Intelligence stated that cyberterrorism is a huge threat to our security in the United States, he also said that businesses lost an estimated $1 trillion to cyber crimes in 2008. I can only imagine that that number increased in 2009 and 2010 and will continue to increase. I’ll discuss this more in a post later but just wanted to throw that out there in case it surprised anyone else as much as it did me!


$3,000,000 spent and nothing picked up by insurance!

August 26, 2010

Sorry for the absence but things have been crazy around the office and I let blogging get left behind. While I’ve been gone there has been a ton of data breaches and other related events happening so I hope you’ve been able to keep up. While reading an article today I found one that might hit home for some of you. A data storage company suffered a breach and lost HIPAA information for a large number of patients. That information caused the client to spend over $3,000,000 dollars to comply with the breach notification laws.

The client has come back on the storage company who reported the loss to their insurance company only to find out a breach of data isn’t covered on the general liability policy. This is an instance that a cyber liability or data privacy policy would respond to. Because the broker wasn’t educated in the space, someone is going to have to come up with over $3,000,000 to reimburse the client for their expenditures. This isn’t a situation I’d want to find myself in.

To read the entire article, click here.


Cyber Liability vs. Data Privacy Coverage

July 22, 2009

Although some carriers and individuals lump Cyber Liability and Data Privacy coverages together, they are different coverages. I wanted to take a few seconds to discuss the differences in the coverages.

Cyber Liability coverage covers any liabilities that occur through a website, network or other technology your business uses. If a customer uses your web portal to spread a virus to other users, this would be a cyber liability. If a hacker steals money by hacking into your network, this would be covered under your cyber liability policy. However, typically one of the first things excluded in a cyber liability policy is the theft or loss of data which is why you need a data privacy policy as well. As I’ve discussed in earlier posts, data privacy insurance covers costs associated with a data breach. That breach can occur because data was either electronically lost or stolen or physically lost or stolen. For more information on these coverages, feel free to call me or e-mail me.