Other types of organizations, including school boards, are now investing in the coverage.
Following the latest tremendous data breach – the one that struck Target and that gave hackers access to the consumer debit and credit card account information from about 40 million people – a growing range of types of organizations are looking into cyber liability insurance and the type of coverage that it can provide them.
Ann Arbor Public Schools is the latest to join this flood of non-retail groups that are covering themselves.
While Target fights to recover from the breach and is now paying for free credit monitoring for all of the affected customers, other organizations are looking into the difference that cyber liability insurance could make in case they should ever experience their own data breaches. Ann Arbor Public Schools has realized that this threat is a real one and that a data breach could be very harmful to them if they were to experience one without this additional security protection.
Cyber liability insurance was once rare but is now becoming a standard part of doing business.
The Ann Arbor Public School (APPS) district has decided that this coverage is especially important as it transitions its human resources department onto a new platform that is web based. Officials from the district felt concern that this could increase some security vulnerabilities regarding the student, parent, and employee personal information when it comes to cyber attacks and theft.
The policy that the APPS purchased provides coverage for up to $1 million. This is being provided to them at an annual premium of $21,407. This will be the first year that the district has coverage of this nature.
That said, this is only the latest among thousands of organizations that are watching an increasing number of data breach headlines of companies that had previously been considered to be large and highly secure. The Financial Times reported that in the past year, there has been a notable jump in the number of companies and organizations that are purchasing this protection.
It is becoming clear that companies of all size are vulnerable to data breaches and that cyber liability insurance is one of the only things that can be purchased to ensure that the massive expenses related to this type of occurrence will be manageable if they should occur.