While personal identity theft is a serious matter, when it affects your business, it can be disastrous. Both organized crime and petty criminals now have access to the technology that makes breaking through the firewalls that protect online accounts, computers and mobile devices possible. A hacker located anywhere in the world can access your online data and corrupt or delete it. And also commit crimes using your identity that your business will be held responsible for. For example, a hacker can collect a great deal of personal information about one of your clients from websites and social media. The hacker can then contact your company and using the information gathered, establish his bona fides. From there to obtaining confidential information is a small step. The catch 22 here is that you need to be as helpful as possible towards your clients. But the more “helpful” you are, the easier it is to fall into the clutches of a hacker. And you could be held responsible for any loss that the client undergoes because of your actions or any crimes committed in his name using information that you have supplied.
Hacking and data/identity theft is a danger that businesses have to live with. Besides taking all possible precautions to maximize data security, it is essential to be insured against the consequences of any liability that may accrue to your business because you have been hacked. If confidential data in your business’s possession is stolen, the affected party can use you for negligence and even for breach of contract if there are contractual obligations in place. And if your business email accounts are hacked and mails sent in your name result in losses to those who act up them in good faith, the liability may devolve on you.
With technology advancing so rapidly, there is no guaranteed way to protect your business from hacking. But being properly insured and covered against any potential losses that hacking can cause you will protect you from the often ruinous consequences of an online security breach. How do you go about it? What do you need to do? How much will it cost? Call Allied Brokers to find out all you need to know about insuring yourself against liability from hacking and online security breaches.
Visit our website at www.alliedbrokers.com for information about all the types of insurance we offer. Or call 1-888-505-7988 for a free rate quote.