Every business owner has read about cyber breaches and how these impact every business. We want to focus on how to prevent your confidential business information from being compromised in the first place. Cyber breaches come in a variety of forms, so we will focus on the most popular breaches; Insider breaches, payment and credit card skimmers, and direct cyber-attacks. With most of today's critical information stored on computer systems, cyber-attacks can cost firms time, money, and data, but also their reputations.

Prevention Tips
Provide Training to all employees. Helping your employees understand how cyber breaches occur, will go a long way in prevention.

Keep your operating system, browser, anti-virus, and other critical software up to date.
If at all possible utilize a third party company to serve as your IT department, unless you are large enough to have full time professionals.

Activate your firewall. Firewalls are the first line of cyber defense; they block connections to unknown or bogus sites and will keep out some types of viruses and hackers.

Secure all passwords and do not share them with anyone.
Use only secure wireless networks.

Develop a secure way to allow laptops off the premises. Never keep client information on laptops if used off site.

Install the latest operating system updates. Keep your applications and operating system (e.g. Windows, Mac, Linux) current with the latest system updates.
Verify the authenticity of requests from companies or individuals by contacting them directly.

When an employee leaves the company or is terminated, turn off the access to their computer. If there is personal information on their computer, have your IT person manage the process.

Be aware of phishing scams. This involves a hacker using an email or website to install malicious software onto your computer. These web entities are designed to look like a normal email or website, which is how hackers convince their victims to hand over personal information.

Never open an email from someone you don’t recognize, even if it identifies you by name.

Make sure a website is secure before you enter personal information.
Do not give out any information over the phone or in an email unless you are completely sure it is authentic. Social engineering is a process of deceiving individuals into providing personal information to seemingly trusted agents who turn out to be malicious actors.

Carefully read the permission release before installing apps. 
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You may want to consider encryption programs for sending confidential information.

If you have any questions, or would like a Cyber Liability Insurance Quote, please feel free to contact me.

Jason Matison
Commercial Insurance Agent
Austin, Texas

​As a business owner, it’s possible you make decisions every day that can come back to bite you. You may not think so, but in this day of litigiousness, your business may be at risk.  A type of Business Insurance to manage your risk is management liability insurance.  Depending on your business, in addition to having General Liability Insurance, having Professional Liability Insurance is not just good business, it is as necessary as heat and lighting for your office.  Statutes, federal, and state laws change on a regular basis, so it is important that your company protect its assets with management or professional liability insurance. For example, if you are an Engineer, Certified Public Accountant (CPA), or in any type of field giving advice or service, you should consider professional liability insurance for your business.
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Some things to Consider

• General Liability Insurance does not cover the risks of Employment Liability, Professional Liability, or Directors and Officers Liability.  You need a separate insurance policy to cover these risks.

 

• Defense costs are going up at a rapid rate. Management liability insurance can provide needed defense coverage, even if you are not liable (yes, even if you are not held liable). You still have to go to court.

 

• Company owners can be held personally liable for their actions as well as the actions of other managers or executives. It is imperative to put coverage in place for protection.

 

• Twenty five percent of private firms have had some sort of employment issue that could not be resolved without legal counsel involvement.  The average defense costs are $250 per hour. These costs can add up. You also have to consider finding the right law firm, which can take time.

 

• Many businesses fail to purchase Cyber Insurance. According to Adam Hewitt, senior vice president of INSUREtrust, “Cyber risk is the fastest-growing segment in the commercial liability insurance industry -- increasing at an annual rate of 30 percent”. The average cost of each compromised record is around $175.00. Most states have laws requiring notification if you have had an incident. If you are collecting personal data, it is your responsibility. The judge/court probably isn’t going to want to hear, it’s stored in the cloud.

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If you have any questions about management liability insurance or any other type of Business Insurance, please let me know. We are located in Austin, TX and would be happy to meet with you to answer any questions and provide you with a quote. Once you have had a chance to review coverage and pricing, then you can make an informed decision. 

I'm sure you have heard about a Data Breach in the news at some point in time. Usually the media just tells about the large companies that have been impacted. For example, Experian and T-Mobile have made the news recently. Since we only hear about the large companies being attacked, I'm sure most small businesses think it cannot happen to them or the impact isn't that big. The reality is you don't have to be a Home Depot, T-Mobile or Target to be a victim of a Data Breach as most cyber attacks are small to medium sized businesses. According to an industry expert, 62% of all Cyber attacks are on small to medium sized businesses. Now to get back to the question, what is a Data Breach? It is private data that is viewed, used, held for ransom, or stolen by an unauthorized person. Who would have thought 10 years ago we would be worried about someone taking our data and holding it ransom.

Let's review some facts:
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• Data breaches and cyber attacks have increased another 23 percent in the last year​
• 25 percent of all breaches have occurred in organizations of 2,500 or fewer employees
• The average cost of a data breach has risen to $6.53 million (this includes costs related to loss)
• Costs associated with that breach average $217 per compromised record. ​

As you can imagine, it's a little more complex than a phone call to your IT guy or gal. The most important thing at stake for a small to medium sized business when it comes to a data breach is not only their business, but their reputation. These large corporations have huge public relations firms to come to their aide, and when it comes to defense from a lawyer, money is no object. Worst case scenario their stock might drop a few points. But again, the PR firm is going to make a statement and put everyone at ease.  Another thing these large companies have is a trusted brand, which can go a long way when an attack occurs. A small to medium sized business probably does not have the luxury of any of these. One small breach could cause their livelihood to crumble and never recover. Fortunately, there are options. The first option is to do nothing and have the mentality that it won't happen to you. The second option is a solution. 

When it comes to Business Insurance, business owners need to be thinking about more than just General Liability, Umbrella, and Property Insurance to protect their business.  Since we live in this digital age now, Data Breach Coverage should be considered by all business owners. The amount of coverage is going to depend on your level risk and your business. Here's some basic coverage information you should look for when it comes to Data Breach:

• Breach notification expense
• Credit card monitoring services
• Cost to retain a public relations consultant
• Extortion expense
• Access to a Breach Coach
• Worldwide coverage

These are just a few things to look for when considering a Cyber Liability policy. Here's a fantastic checklist to review. Bottom line, a stolen laptop, smart phone, a stolen record or a virus can have an enormous impact on a business. There are many options when looking at Data Breach coverage for your business. It can be very confusing and overwhelming, if I can help, please let me know. 

Jason Matison
Insurance Agent
​Austin, TX