Cyber Liability in California a Major Concern for All Businesses

Cyber liability is fast becoming a common term for small to medium sized businesses in California. If you own a business in California with less than 50 employees you actually have a better chance of having a cyber-loss than you do of have a fire. Your business insurance program needs to have cyber liability coverage. Standard commercial insurance does not cover data damage, destruction or loss, and traditional business interruption insurance doesn’t cover business systems downtime.

Many companies are unaware that their current business and insurance policies most likely do not cover them for all of their technology-related risks. Our technology insurance protection offers coverage options tailored to fit your company’s unique needs.

Common Cyber Liability Threats

1. Employees stealing confidential information.
2. Cloud attacks: The growth of the cloud will lead to attacks targeting data (personal or corporate) stored in the cloud.
3. Cyber criminals targeting attacks on Android platform devices.
4. Hackers using special software to hack your laptop and hard drives.

There are very strict regulations at the State and Federal level that place mandatory requirements on companies that have suffered a cyber-loss. If your firm is responsible for the theft of a client’s personal information, you may be required to buy personal identity theft coverage for them for up to one year or more. This requirement can cost you as much as $200 per individual item. Cyber insurance can protect you against many of the risks associated with a loss.

• Identify theft recovery
• Notification costs
• Loss revenue
• Data restoration
• Third party coverage

The Government has published some helpful guidelines.

At Leap / Carpenter / Kemps, Merced County’s largest locally-owned agency, we have an experienced staff of professionals who understand that each business is unique and that the one-size-fits-all approach just doesn’t work.