Any type of company that manages any personal or financial information on behalf of its clients or its employees is at risk of having that information misused as the result of a security breach. If your company experiences a security breach, it could be exposed to costly damages.
Many examples of cyber liability claims involve instances of third parties infiltrating a company’s security network and stealing information. In other instances, a third party can communicate fraudulent information to employees and direct them to send information or even transfer funds.
A data breach can occur because somebody within a company mistakenly breaks a security policy and downloads a virus or ransom ware. In addition, somebody could accidentally leave physical data content such as a computer or flash drive in a public place. Also, it’s possible that employees could purposefully leak data because of a grievance with the company or they could misuse it to commit theft.
All companies need to take active measures to prevent data breaches from occurring. It’s important to work with a knowledgeable IT service provider who can help you develop a comprehensive risk mitigation strategy. In addition, it’s imperative to obtain insurance coverage for cyber liability from a carrier who is experienced in handling these types of claims.