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Why the Real Cybersecurity Threat to Your Business May be Inside the Company
The U.S. government has long worried about foreign hackers getting their hands on sensitive information. But in recent years, the biggest blows have been dealt by insiders - like Edward Snowden.
The same goes for the business world. They may have gotten less attention than Snowden, but insiders have been leaking valuable and sensitive customer information for a long time now.
And it's becoming more common. This year, leaks by insiders are expected to approach or even match the number of successful attacks from outside, according to the cybersecurity forecast released this past winter by Kroll, the world's leading risk and security consultancy.
Kroll's forecast points to a brave new business world where technology gives bad guys more opportunities to access, steal, or leak valuable information - but also gives businesses more tools to fight back.
In 2014, the forecast says, a "significant number - if not half - of data breaches will come at the hands of people from the inside." But the forecast also says that more inside jobs are already happening than most businesses know, with many leaks and attacks never discovered - or never disclosed. That low visibility is going to change, as companies invest in better security, and governments beef up privacy breach notification laws.
To make attacks more visible, and less successful, Kroll already sees a cultural change in the business world: higher standards for all. Successful businesses are investing in software and other security-tightening strategies to avoid leaks. Businesses will also be putting more resources not just into prevention, but also into tools investigating attacks - and responding to them faster. And corporate board audits, along with customers, will pay more attention to how companies are protecting information.
Small businesses - often seen as easy marks - will also need to adapt to this new climate. They might have fewer resources and personnel than big ones, but they still have the same obligations to protect data, and can take steps like pre-employment screening, more rigorous document retention and destruction policies, and staying on top of changing laws. And security software is getting cheaper - it isn't just for big companies anymore.
Cybersecurity is changing at a whirlwind pace - both in the tools available and in what's expected of businesses. The Kroll forecast recommends businesses bring IT together with leadership and legal counsel to find the best tools - both preventative and responsive - and policies for each company, to prepare for this changing technological and legal landscape, and avoid falling behind.
Of course, no cybersecurity plan is complete without cybersecurity insurance. As you find the right security software, strategies, and response policies, let us help you also find the right insurance coverage for your business, so you can face this future of more insider attacks and higher standards.
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 What Pro Sports Can Teach us About Saving Money With LEED Certification
Lower costs, happier employees, great PR...and more reasons why you should consider getting your business LEED certified
Sports fans, take heed: the latest trend in pro athletics has nothing to do with how the game is played, how much the players are compensated, or the latest illegal performance enhancing additives. It's all about going green with LEED certification.
The Arena Fonte Nova in Salvador, Brazil, site of recent World Cup games, diverted three-quarters of the waste from its construction from landfills, drew 35% of necessary power for the project from renewable sources like solar energy, and employed recycled content for 20% of their building materials.
The 49ers' new home-in-progress is striving to achieve LEED certification. Their efforts have included more parking for bicycles (including valet bicycle parking for especially large events), and using recycled toilet water to irrigate the Bermuda Banda grass field, a turf variety which requires 50% less water than the average football field.
The Portland Trail Blazers' Moda Center has gone for the gold (LEED level, that is) with a food composting system for vendors which diverts 800 tons of trash from landfills annually, a partnership with regional gas and electric companies to purchase 100% renewable energy, and offerings of locally produced food and beverages to reduce the carbon footprint of transporting food a long way (and provide healthier snacks for customers in the bargain).
Ok. WTF is LEED?
LEED, Leadership in Energy and Environmental Design, is a system of assessing the design, erection, management, and maintenance of green commercial and residential homes and neighborhoods. Certification is overseen and implemented by the US Green Building Council, or USGBC.
There are nine separate LEED rating systems (LEED for healthcare, LEED for retail, and so on) within five categories: building design & construction, interior design & construction,
building operations & maintenance, neighborhood development, and home design & construction.
Within each of those categories, buildings can apply for varying levels of certification based on a point system: certified, silver, gold, and platinum. There are 100 possible points a building project can score within the subcategories of sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, and innovation in design.
In order to be certified, a building also needs to comply with LEED regulations surrounding environmental laws, occupancy scenarios to determine possible energy usage based on inhabitant behavior, building permanence (which involves, among other things, renovating existing structures rather than building new ones) and pre-rating completion, site boundaries, and area-to-site ratios (a LEED certified building's floor area needs to inhabit at least 2% of the project's land area). The building's owner needs to share data on the building's energy and water use with the USGBC for five years after occupancy or date of certification (depending on whether the building is new or just improved).
Sounds like a lot of work. What does this have to do with me?
Getting LEED certified isn't for everyone, although even the smallest of businesses can benefit from making improvements in their environmental standards and practices. But if it is feasible for your businesses, consider these additional perks:
- Happier, healthier employees: LEED buildings have lots of windows and wide open spaces to take advantage of natural light, and are built with human comfort in mind. They also have much better air quality, nontoxic paint, and natural flooring.
- Good PR: everyone likes a nice green business. Leaning into LEED shows you're a leader and that you're actively doing something positive for the environment and your community.
- Lower operating costs, higher property value: Yes, your initial building investment is higher, although how much higher is up to you-for instance, if you want to install a low-flow toilet, you'll pay about $100 more than you would for a standard toilet, and use about 20% less water. If you install a composting toilet, you'll pay four times as much-but use no water whatsoever. But what you save in energy alone you will reap, quickly. A study conducted by the New Building Institute found that LEED buildings use approximately 24 percent less energy than their non-LEED counterparts.
- Even more financial benefits: Wait, you need more? Ok. Depending on your town, county, or state, you may qualify for such bonuses as grants, property tax breaks, exemption for all building materials, reduced building permit fees, permission to develop the site at a higher density, and more.
But before you start looking for an architect...
LEED is not a magic bullet, and by no means a perfect approach. There are a number of criticisms about various aspects of the system. For one, LEED measures design, not performance, leaving no guarantee that, after the five-year reporting period is over, the building will continue to operate at optimum efficiency.
Furthermore, LEED points are unweighted. This means that some points are easier to obtain than others, and builders may go for the low-hanging fruit rather than trying for the more difficult or expensive (but more beneficial) points.
For instance, you can get one point for sustainable wastewater management (which may involve tracking consumption, installing new toilets and sinks, and implementing water recycling systems), or one point for providing your employees with a nice view of the outdoors, which you are probably doing anyway if you're fulfilling some of the requirements of LEED certification.
There is also a concern that building within LEED standards stifles creativity, and discourages new innovations in energy management and sustainability.
The good news is, the USGBC is open to change, and continues to review their strategies and policies in order to set a better standard. They know LEED isn't perfect. And while it may not be perfect for your company, either, you can also strive to set a better standard when it comes to innovation, employee comfort, and environmental responsibility.
Although the details of LEED certification may need work, the overarching principle is one we could all stand to adhere to-a greater consciousness of our environment, and the impact we have on it.
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The Ties That Bind: What You Need to Know About Subcontractor Liability
Using subcontractors is a great method for staying flexible, and handling jobs that are seasonal or aren't central to your business. But just because someone isn't your employee doesn't mean their actions aren't associated with your business, or that you're not responsible for the damages they might cause.
When choosing a subcontractor, a thorough background check is absolutely vital. The background of the person you hire to shovel snow out of your microbrewery's driveway might not seem that important to the beer-making process, but if a swinging shovel slips out of their hand and breaks the window of a passing car, you become the microbrewery that breaks car windows.
You need to make sure that your subcontractors - and their own employees - know what they're doing, and don't have a bad reputation that could transfer to you.
But more than your good name is at stake. You also need to make sure that a subcontractor has their own insurance - because a lawsuit could jump from them straight to your business if they don't. When companies are interconnected, plaintiffs sometimes go after whichever one could provide the biggest payout - and that microbrewery almost definitely has more money to pay out than the uninsured butterfingers shoveler.
Aside from general liability coverage and other coverage relevant to the subcontractor's function, it's also important to make sure the contractor has workers' compensation insurance. If that shoveler throws out their back while clearing your microbrewery's driveway, they can claim the microbrewery owes them compensation. If they have their own insurance, and liability has already been established (more on that in a moment), then their own insurer will take care of them, and you won't have to.
After you choose your subcontractor, with their long resume of great and mishap-free work, any necessary licenses, and insurance coverage against damage, injury, and other mishaps, it's time to draw up that subcontractor's contract - a contract that makes clear who's responsible if something goes wrong. Right there with the pay rate and other important details, include a clear statement freeing you from liability, making the subcontractor responsible for their own actions.
Without that, all of your background work to make sure they're experienced and licensed and insured could be for naught. Even the best, most professional and well-covered subcontractors can run into trouble - and they, or an individual they damaged the property of, might think they can get more money from you than from their own insurance policy.
The beauty of using subcontractors is that they can give your company flexibility - but it's up to you to make sure they don't add liability.
    
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All content © 2014 Professional Marketing Associates, Inc. This newsletter is not intended to provide specific legal or insurance advice. Please consult your individual agent for further information on the topics covered.
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