Author: Mike Causey, Insurance Commissioner
The Union County town of Waxhaw recently experienced a cyberattack. Fortunately, the attack did not affect any emergency services and early indications suggest that no personal information was stolen.
Unfortunately, we hear about these types of attacks all the time. It’s the world we live in.
Cybercriminals finagle their way into a business, government or personal computer system. Their cunning efforts force us all to consider having strong passwords and hiring IT professionals.
Businesses routinely require their employees to spend hours undergoing training on how to recognize cyber threats. Words and phrases such as “phishing” and “social engineering” have become common in the workplace as cybersecurity officials seek to protect governments, businesses, clients and workers from bad actors.
Despite the best efforts by IT professionals and employees, criminals can break through these defenses, prompting businesses and government agencies to find ways to manage these risks. Cyber liability insurance is one way to mitigate these risks.
Cyber liability insurance policies vary on exactly what is covered, so it’s important to read the fine print closely. Ask your agent or insurance company questions if you’re not sure what is covered.
A policy may provide for first-party coverage for an insured business or third-party coverage for the business’ customers or the public.
First-party coverage examples include paying for the expenses of recovering from a cyberattack, paying for business interruption losses or extortion expenses. An example of third-party coverage would be paying for the liability damages claimed against the business resulting from the attack.
Most cyber liability insurance is designed for businesses and government agencies. However, individuals may be interested in obtaining identity fraud coverage. This could be helpful if you experience losses because a criminal steals your personal identifiable information, such as your Social Security number, driver’s license number or bank account or credit card numbers.
I suggest that you monitor your financial account information and your credit report to make sure someone hasn’t stolen your personal information or adopted your identity.
I also recommend that business owners concerned about cyber liability reach out to a licensed insurance agent who is knowledgeable about cyber liability insurance to discuss the different coverage options and see what is the best fit.
We have full-time experts ready to help consumers with their insurance questions. You may call us at 855-408-1212 weekdays from 8 a.m. to 5 p.m. Or you may visit www.ncdoi.gov.
We didn’t used to worry about cyberattacks. The recent attack on the town of Waxhaw’s IT system reminds us of how much we depend on IT, and how vulnerable we can be to attacks.