Have you been reading #1 New York Times bestselling author Tom Clancy’s newest book Threat Vector like me? If not, without giving too much away President Jack Ryan faces a new international threat. Chinese cyber warfare experts have launched a devastating attack on American infrastructure.
It turns out that the book may not be all fiction. In a recent report on National Public Radio we learned that U.S. industry has faced devastating cyber-attacks over the past several years from a Chinese Military unit based in Shanghai. During that time over 141 corporations across 20 different industries have had their intellectual property and data compromised.
If this is happening to major corporations, just how safe is the data in your firm? According to a recent survey by Zurich Insurance Co. Ltd. Only 19% of businesses have purchased insurance specifically designed to cover cyber risk. The survey conducted by Harvard Business Review Analytic Services found that while 76% of respondents expressed concerned about information security and privacy over the past three years relatively few are taking concrete actions.
When asked to access their own individual risks respondents to the survey responded that malware and viruses were top concerns. Other worries included administrative errors or mistakes by employees and incidents caused by third-party data suppliers.
So let me ask you a question, in the event of an attack are you covered under your standard business liability insurance policy? In most cases the answer is no. Liability loss of customer or employee data is not typically covered under a business insurance policy which generally only covers so-called “tangible assets”.
This is a great time to put in a call to your insurance professional. Talk to them about the options that are available to you. Each insurance carrier’s policy forms will not be the same. There will be significant differences in coverage’s and policy exclusions from carrier to carrier. This is not a homeowner’s policy; this is an advanced business policy that demands discussion.