Risky Business

Risky Business

February 2012

Welcome to this month's edition of "Risky Business".

This month we discuss Cyber Risks and the ramifications of "hackers" gaining access to your Information Technology Systems and the ways in which the Insurance Industry is responding to these new threats.

Insurance News

Cyber Risks - The New Threat

We are reading in the paper and hearing on the news more about large corporations being "hacked" into including in recent times, Sony, Zappos (subsidiary of Amazon), US Government departments and even the NBN here in Australia.

The ramifications of outsiders gaining access to your Information Technology Systems can be catastrophic. Google alone say they have 1,000 attempts everyday.

Previously it was a risk that was managed by your IT Consultant or downloaded anti-virus software. But it has become a much greater issue now than ever before.

It is not just that Hackers can steal money or other negotiable instruments from you, but they can bring down your intranet and web sites effectively halting production, they can access confidential files of your clients and they can utilise or takeover valuable databases that a business has painstakingly developed over many years.

The Insurance Industry is gradually responding to these threats in many different ways. At this stage, there are not numerous policy covers and very few offer a specific Cyber Risk policy. However, there are others that offer specific events in either a:

Commercial Crime Policy - picking up external and internal theft by the use of Technology
Management Liability - some insurers have begun including an "Internet Liability" cover for actions against Directors who have a duty to protect confidential information
Mutli-media Liability Policies - where insurers will cover claims against an Insured entity involved in the Multi-media Industry.

Increasingly Retailers are being seen to need this cover. However, anyone who uses any type of Computer or Web-based system is exposed to these threats and should be planning how to manage these risks to their business.

CPR Insurance Services can provide advice about managing these Cyber Risks.

To read more about Cyber Risk Insurance, click here for more details. Can your business continue to ignore this very quickly developing and powerful threat to your business?

If you want to learn more about these Risks, call CPR Insurance - experts who can save you.

Joke of the Month