Major Hotel Hack Highlights Importance of Cyber Insurance

In light of the Marriott hack that exposed the data of up to 500 million guests, now is the best time to explore this strategic incident and how it can impact the businesses of your insureds. “Everything that’s in the news is about large companies but it is the smaller businesses that are more susceptible to cyber attacks and less able to adequately handle the loss,” says CEO Martin Burlingame of Commercial Insurance Group.

Everyone can learn from these losses. While we cannot offer legal advice, here are some common steps to follow:

GET CYBER LIABILITY INSURANCE! This could provide:

  • Awareness of best practices to PREVENT a cyber attack
  • Suggested policies and procedures such as calling an attorney for any potential legal issues
  • Coverage for Civil and Criminal charges due to the breach
  • Coverage for additional expenses for forensics and investigations
  • Coverage if legal action is taken against you if you have found to be negligent

Outsource your IT just like you would with accounting! They can help you develop a disaster recovery plan and work closely with your office manager. They can also help you set up daily backups and test the recovery plans.

If a breach occurs, call your insurance agent and/or your cyber carrier. Connect with the IT company you use and make sure that you comply with security breach notification laws. In Colorado, Gov. Hickenlooper recently signed one of the strictest Privacy & Cybersecurity Laws in the country to protect consumer data so be diligent!

Train all your employees to maintain data in a secure database and encrypt all sensitive data such as social security numbers, identification numbers, medical and health information, biometric data, usernames, emails, and passwords. Keep them aware of new schemes such as phishing emails that mask emails to appear as if they are someone internal to the organization.

There are plenty of resources available so if you have questions, call our underwriter Heather Gilginas at 719-476-0112. Email: Heather@cig-llc.biz