In a recent article published by Business Insurance, many risk managers and cyber security experts are warning companies to be aware of the potential financial and legal exposures they face when moving customer and company information to a cloud-based storage system.
That's not to say that cloud-based storage is bad nor should it be avoided. In fact, for many companies, moving to a cloud-based storage system has greatly increased productivity and efficiency. The problem is that moving to a cloud-based system increases your chances of a cyber attack.
One of the key challenges cyber liability and cyber attacks is the lack of standardized laws and regulations. Unfortunately, this lack of uniform regulation across states in regards to data security and breach notification laws can create some real nightmares in trying to comply with all of the rules if your company does experience a cyber attack.
This is the reason why we recommend cyber liability insurance coverage to many of our clients. Cyber liability insurance will help protect your company from negligence claims related to cyber security and many policies will help you comply with state laws in notifying clients of any security breach.
If you have questions in regards to cyber liability and if it's right for your agency, please feel free to contact our office.