As high profile data breaches become headlines on a regular basis, awareness of this coverage is expanding.
The risk of a data breach is rapidly on the rise and as it is coming to the point that no one feels safe from this potential problem, awareness of cyber liability insurance is climbing as well, and the result has been a rapidly evolving coverage sector.
The latest estimates are that the data breach at JPMorgan Chase could impact 76 million households.
As the risk rises and as it is continually in the public eye through headlines that show that even some of the companies that are the most trusted for their security are not immune, cyber liability insurance has become an increasingly common consideration. This has been propelled forward by considerable campaigns that have been designed to boost awareness among businesses of the availability and coverage provided by these policies.
Many companies are not aware of the full implications of a data breach and the difference cyber liability insurance can make.
Businesses of all size and nature can be impacted, from a retailer to a health services organization. They need to keep in mind that it is not just a matter of boosting security after a data breach has occurred. Affected individuals and businesses must also be notified, repairs may need to be made to systems and their contents, there will likely be lost time throughout the recovery process, and there will be harm to the reputation of the company, among many other things.
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That said, while cyber insurance may be rapidly on the rise, it is still considered to be a coverage product that is in its infancy. Therefore, as businesses of different sizes and natures begin to see coverage, insurers are adapting products to help to make sure that there are policies available to the largest possible number of customers.
Cyber liability insurance, itself, is less than five years old. That said, it is becoming increasingly clear that they are needed by many companies as they rely on technology on an increasing basis. The Ponemon Institute has released the results of a study that have indicated that cause of data breaches is a system glitch or human error, 59 percent of the time. It could result from something as simple as losing a mobile device. No tech using company is immune to that.