Cyber attacks continue to make the news and remain a growing concern to many companies in the U.S. as well as abroad. As a result of these cyber crimes, there has been an increased demand for cyber insurance and breach prevention for companies large and small. This is due to the escalating frequency of attacks and the cost to repair the damages after a breach has occurred.
There has been a continued occurrence of serious data breaches, with cyber attackers accessing all types of sensitive information. Hacking activity actually reached an all-time record high in 2016, according to experts. This has brought to the forefront the many complex issues of cyber security and the protection of sensitive personal information.
Due to the many high-profile cyber incidents that occurred last year (Quest Diagnostics reported in December that hackers compromised its systems and may have gained access to the personal information of 34,000 people), brokers providing orange county insurance have seen even more of a demand to provide their clients with options on coverage to help pay the costs of these expensive breaches.
Many companies turning to cyber solutions
Companies have been seeking financial protection through insurance in larger numbers, due in part to the attacks against major companies. Horizon Blue Cross Blue Shield, New Jersey’s largest insurance carrier, has had to deal with at least two breaches within the last three years. Meanwhile smaller businesses were hit hard by cyber theft occurrences in medical offices, retail sales divisions, and a host of other outlets.
Most of the larger breaches drew attention in news reports, raising the level of attention given to cyber risks within companies. Along with any disruption in services resulting from cyber crimes along with the ensuing reputational damage, many companies experiencing a data breach also found themselves attracting the attention of regulators, including the Federal Trade Commission.
Orange county insurance brokerages responded to this demand by offering broader cyber insurance coverage, including a cyber liability enhancement for any current policy that will provide financial protection. Companies accepting credit cards, warehouse customer data or that store employees’ personal information on network computers are all at risk.