Increased online activity by businesses – from e-commerce to remote project management – requires an added layer of privacy security. Digital interactions with clients as well as between employees also means there is extensive sensitive data (e.g. addresses, credit card details, private messages, etc.) being shared and stored.
Businesses that ask for personal information places them in a position of possible liability should there be a breach in their system.
Cyber Liability and Data Protection Insurance is designed to safeguard online users from damage and loss upon exposure to hacking or system errors.
Unfortunately, most businesses do not see the need for this type of insurance for reasons such as:
1. My business does not store sensitive data.
Most businesses will hold information about their employees or suppliers as a standard practice, meaning these companies are at a higher risk of being targeted for a cyber attack. Downplaying the likelihood of having your valuable data stolen may cause irreparable damage to your company’s reputation and operations.
In a time when remote work and online interactions are the status quo, businesses need to have all bases covered.
2. I don’t sell anything online.
Chances are, your business still uses computers to store digital files of receipts, invoices, and names of customers. Having a local server and the absence of online commerce does not exclude your business from cybercrime.
One has to factor human error, malware, and phishing even if your company is not engaged with Internet commerce.
3. The Cloud is highly secure.
A company is legally responsible for the information that is stored in their cloud, even if a hacker accesses the cloud via a 3rd party. This also applies if you’re using an outsourced IT provider. If the provider’s system is breached and your data gets leaked, your business may incur notification costs (to both the Privacy Commissioner and the affected individuals), remediation costs and legal costs. Encryptions and 3rd party security measures will not cover these costs.
4. The IT Department will take care of it.
Does your IT department work round-the-clock? That’s highly unlikely. A lot can happen in a few minutes, let alone overnight when everyone is off.
Having cyber liability insurance in place will provide you with a 24/7 response team that can help mitigate further loss and damages when an attack occurs.
5. Our system is top-of-the-line and can’t be hacked.
There’s not a single system that is 100% secure. Technology is ever-changing and cyber attackers are constantly finding ways to access your data. And while you may have the most secure system now, that still requires everyone in the company to have the same knowledge and competencies in using, managing and maintaining it.
Again, human error can’t be discounted which makes cyber liability insurance all the more important for any business.
We can help your business find the best cyber liability insurance in Hong Kong.