Over the last several years, cyber liability coverage has evolved from just insurance for information technology companies to coverage that nearly every class of business should have if they don't already. From retailers, investment firms, banks, contractors, distributors, restaurants and medical offices, many businesses are unaware of the great security technology exposure they face. Recent state laws require companies that have experienced a security breach to notify all customers that could be affected by the breach that their information has been compromised, even if the information hasn't been used. In most cases, the notification also requires an option of one year credit monitoring services and a new card or account number for customer. Costs can be as much as $250 per individual breach.

In Oregon a private company experienced on line bank fraud and lost $75,000 in one day. This new cyber-crime is directed to small and medium businesses. The scam is called pushing and involves unsuspecting companies being lured into installing malicious software. This download looks likes it is coming from a bank or other financial institution. The malicious software hides itself and records everything the person does on their personal/business computer. It records user names and passwords for every kind of transaction; including wire transfers. The software will then forward the stolen data along with digital certificate information to the thief who will promptly use the information to transfer funds out of the organizations bank account. As of October 2011, U.S. small businesses have had over $100,000,000 in losses. 

Most business insurance policies do not cover computer fraud by a third party or the liability arising out of a cyber attack. The good news is solutions are available. Make sure your crime policy has electronic crime and fraud coverage with appropriate limits. Cyber Liability from Polaris can help reduce your risk and help you return to normal operations as soon as possible after a cyber loss. 

If you store data, including private information on computers; use e-mail; generate revenue online; or use your computer to control production, manufacturing, or inventory, your company is at risk! In short, any business not making an effort to protect personal private information is seriously out of step with the emerging landscape of privacy law.

Polaris can provide you with a quick quote at  http://www.polaris-ins.com/cyber-liability.php