Business owners may want to rethink cyber liability coverage

Cyber Liability InsuranceThe age of technology brings with it risks that have never been faced before. As more businesses adopt technology and become ever integrated with it, they must protect themselves from malicious attacks. The concept of “cyber crime” has, in previous years, been of little concern. Companies both large and small have fallen prey to hackers but they often recover and improve their security methods. However, the recent and continuous attacks against tech giant Sony have spawned a new wave of concern amongst the world’s businesses. Now, protection from the very real threat of cyber crime has never been more paramount.

In April, Sony was besieged by a group of hackers whose identity is still vague. In the attack, the hackers obtained the personal information of thousands of customers and shut down the company’s famous Playstation Network. The event was costly, ranging in the millions, and Sony was decried for their lax security standards. It took a full month for the company to recover from the attack, opening the doors to its digital playground again last week.

However, hackers have again attacked Sony, this time taking more than 1 million passwords and other vital account information from their databases. Adding insult to injury, the group of hackers responsible for the attack issued a statement criticizing the company for being vulnerable for what they called a “simple method of attack.”

Sony has become a cautionary tale of what can happen if protection is not taken seriously. Several insurance companies have adapted to the changing times and have begun offering coverage for such occasions. The sector is still relatively new and costs for coverage are inexpensive when compared to homeowner’s policies, but demand for such coverage is at an all time high. Unfortunately, there is still a long way to go before insurers can offer coverage that accounts for all the incarnations of cyber crime.

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