Moving company insurance tip: Cyber liability affects you too!
If you run a moving business, an attack from cyberspace probably isn’t the first thing on your list of worries every morning. After all, what would a cyber thief expect to find in your operation?
You might be surprised.
Like most businesses, you’re likely storing a lot of confidential employee, company, and customer data in your computer systems, laptops, smartphones, paper files, and even on the systems of third party vendors. All of that data could be at risk. And if your company has a website, it could be vulnerable too.
What exactly is cyber liability?
The term covers an array of liability exposures that aren’t tied only to businesses that sell products or services over the Internet, including failure to protect confidential corporate or customer information – even if the data is stored in paper files.
Who is vulnerable?
Remember the WikiLeaks denial-of-service shutdown of MasterCard in 2010 that affected millions of customers? Then there was the case of Blue Cross Blue Shield of Tennessee, who in 2012 paid a hefty $1.5 million settlement after the theft of hard drives containing unencrypted health information for more than 1 million patients. These are big cases, but exposure isn’t limited to big companies. Small companies are targets too – in fact, cyber liability is considered one of the fastest growing exposures of 2013.
Think your traditional business insurance policy will cover you?
Think again. Most GL and other traditional business insurance policies won’t cover these exposures, because most of them were designed long before the cyber age and were never intended to respond to these types of threats. In fact, many traditional policies have specific exclusions for confidential information, damage to intangible property, and other risks associated with cyber liabilities.
A legal nightmare
Then there are the lawsuits alleging negligence, invasion of privacy, and even claims of emotional distress, on top of fines and penalties sought under acts like HIPAA, HITECH, and the Stored Communications Act. The financial damages add up fast, and generally, none of these costs and claims are covered under traditional policies.
Real threats require real protection
Cyber liability is a growing and evolving threat that even affects moving companies. Your insurance provider can help you assess your specific exposures. Just keep in mind there’s little consistency among cyber liability policies and they can cover many types of exposures, so you’ll need to tailor the coverage to your needs. Whatever you do, don’t assume your GL or other traditional policy has you covered.
Cyber threats are a serious part of doing business in the computer age. If you’ve never talked to your insurance provider about cyber liability insurance, you could be just the target the bad guys are looking for. Don’t be caught off guard. Take time to assess your data storage practices and your cyber liability exposures.
One last note: If you haven’t already done so, cover your customers’ goods and insure your moving company with smart, strategic full value protection insurance. This is essential protection for the busy season!
