SDV’s Cyber Risk Practice Group provides a full array of both counseling and litigation services. SDV provides seamless representation for navigating through all of today’s cyber and technology-related risks, from obtaining the right coverage to incident response, claim presentation and dispute resolution.
What is Cyber Insurance and Why Do You Need It?
The purpose of cyber insurance is to pay for personal losses and liability to others based on cyber and technology-related risks. These risks are almost always excluded from commercial general liability (CGL) and Business Owner Policy (BOP) insurance. Many businesses could not survive a major cyber loss without insurance. According to a 2017 study from the Ponemon Institute, the average cost of a data breach is $3.6 million per breach or $141 per data record.
Data breaches can happen to any company that uses computers or smartphones. The majority of data breaches are caused by employees being careless with data security by either misplacing their smartphone, copying confidential information onto an unsecure device, or responding to malicious emails. Cyber insurance can pay for the cost of complying with all of the various date breach notification statutes as well as the cost of defending any paying judgements on any lawsuits arising out of a data breach.
Cyber insurance covers more than just data breaches. It can cover defense and indemnity for accidental violation of a trademark or copyright on your company’s website or social media page, business interruption due to a network shutdown, the cost of investigating the cause of a breach, the cost of reconstructing lost data, and cyber extortion.
Special Concerns for the Construction Industry
Many contractors have no coverage for cyber risk, even though a single data breach could bankrupt a medium-sized construction company. Your company’s computer network contains confidential information, including the personally identifiable information of employees, vendors and clients. If an office worker clicks on a malicious email, a virus may invade your system and give a hacker access to that information. Additionally, supervisors now regularly bring smartphones and tablets onto construction sites. These devices are often connected to the company’s network. If one of these devices is lost or stolen, you have a data breach. SDV’s Cyber Risk Practice Group has years of experience helping construction companies protect themselves from the kinds of cyber risks that affect the construction industry and we can help your company protect itself from these risks.
Special Concerns for the Energy Industry
Cyber risks present a unique concern in the energy industry, as an attack on energy infrastructure has the potential to not only impact electronically stored information but can also affect the physical world. Increasing interconnection and digitization, including smart grids, smart devices and the growing internet of things, make the energy industry vulnerable to cyber-attacks aimed at disrupting operations. Although digitization increases operational efficiency in the industry, growing interconnection also increases the complexity of analyzing, identifying and mitigating cyber threats. SDV’s Cyber Risk and Power & Energy Practices work together to provide a full range of support for energy industry businesses. We are uniquely positioned to assist in identifying and mitigating potential cyber risk exposures and provide necessary guidance on insurance coverage specifically tailored to your firm’s operational needs.
Special Concerns for Information and Technology Companies
Information and Technology Companies have some of the largest cyber-related liability, but many smaller tech companies and startups are uninsured or underinsured for cyber risks, often with the false expectation that their general liability insurance will cover them. In addition to the risks to personally identifiable information common across most industries, tech companies are much more likely to face intellectual property and media related claims. In the United States, statutory penalties for copyright infringement are between $750 and $30,000 per work. Damages for trademark infringement can be even higher. Likewise, cyber insurance can pay for claims of libel; slander; product disparagement; misappropriation of likeness, picture, name, voice, or ideas; plagiarism; and domain name infringement. Regardless of your company’s size, SDV’s Cyber Risk Practice Group can help you find the coverage that meets your needs and represent you in the event of a loss or claim.
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