Should You Sign Up for Cyber Insurance?

For some small- to mid-size business owners, IT threats aren’t at the top of the list of business concerns (see page 45). But maybe they should be, according to Michael Zeldes, senior vice president of HUB International Northeast, an insurance and risk management firm. He recently wrote about the top five IT threats for 2010:

Malware

Software designed to infiltrate or damage a computer system without the owner’s informed consent.

Botnets

Groups of computers infected with a malicious code and controlled by an outside master.

Cyberwarfare

The use of computers and the internet in conducting “information warfare” in cyberspace, such as hacking for sabotage purposes

Threats to VoIP

Disrupting or “stealing” voice communications over the Internet and mobile devices.

Fraudulent onlineactivities—i.e., cybercrime

To help protect your business from serious internet-based risks, check out Cyber Liability Insurance, sometimes referred to as a Cyber Security/Privacy Liability Policy. Such a policy can give you coverage that traditional Property, General Liability, and Errors and Omissions (E&O) can’t address—for example, making sure you’re covered in the event you unknowingly pass on a virus or malware, or if you fail to comply with federal and state regulations regarding consumer notification if confidential information is disclosed. The policy can be tailored to your company’s needs, such as privacy issues, network security or media and intellectual property issues.

For how-to guides on improving your operations, visit nyreport.com/how-to/improve_operations