There is a mounting number of dangers in the cyber landscape with which organizations must cope. Healthcare firms, IT organizations and retailers alike all must negotiate hacks, external server errors, data downtime and poor integration issues that could result in major errors.
When these issues occur, it’s possible for general professional liability services to assist with protecting corporate interests. Everything from managing public relations and notifying federal authorities, to running cleanup and creating new, better security protocols takes time and money. Not to mention the legal ramifications, which could cost companies millions of dollars in government and private lawsuits.
Among all these reasons to consider professional general liability coverage, there are three that make the most sense and bear the greatest weight in the argument. Consider these points and think about how your internal operations could be at risk without this type of insurance plan:
Organizations want to keep expanding, despite the threats that circle their data resources. While the cloud is able to give corporations more reach, what they really want these days are the hands that grab for more information. Specifically, they want mobile solutions, but they may not have the IT knowledge to get it safely.
Property Casualty 360 recognized mobile is one of the “Big Five” pieces of technology currently having the biggest impact on modern businesses. This opportunity is also a potential weakness, the source warned, as it allows for more connectivity and generates a higher rate of risk for businesses to get hacked.
“I think businesses continue to not understand the full risk of cyber security issues. It’s something of a shifting understanding,” said security expert Catherine Mulligan.
Not only does launching into mobile technology potentially pose a risk to companies, so too does failing to protect this piece of infrastructure. Retaining professional liability coverage for portability tools and applications is vital to continuity.
The same lack of comprehension Mulligan mentioned may also be contributing to why some businesses think they’re protected when they really aren’t. That’s because there’s more than one kind of general professional liability coverage for data breaches, but not all companies automatically leap for both.
The National Law Review explained that there are two kinds of coverage under the general data breach insurance umbrella. These include:
•First-party coverage, which covers procedural expenses like client notification and retaining consumer oversight services
•Third-party coverage, which handles financial liabilities for civil and other cases
It’s clear that just one kind of service won’t do without the other, and organizations that choose to only obtain one could still be in for a major money issue. As the source noted, the way that general professional liability services are acquired and applied to corporate operations is critical to the success of these tools. Without the proper implementation, the fines, fees and processing requirements of a data breach could cripple even larger corporations.
Especially in the healthcare field, the loss of personal information can be particularly harmful and expensive. HIPAA laws and electronic records management draw a dichotomy of IT solutions, wherein organizations want to keep their files under wraps, yet they’re also forced to launch ERM systems that put this data into sometimes questionable database situations. Insurance News Net added that on top of all that, there’s also the issue that hackers are getting increasingly interested in these smaller, weaker targets.
Cloud strategy expert Brian Doyle told the source that about half of all business owners in this size segment think they’ll be attacked in the next year. Many of these firms have only basic security solutions, making them easy to breach and their files simple to steal. Without general professional liability services covering cyber threats, these smaller organizations run the risk of going out of business.