Computer Cybercrime Insurance

Computer crimes cost the global economy nearly half a trillion dollars a year, according to the insurer Allianz. Computer crimes, also known as cybercrimes, cover a wide range of offenses. Basically a computer crime is any crime that involves a computer and a network. Computer crimes can threaten a nation’s security, a teenager’s reputation, or a business’s financial health.

A New Jersey contractor lost half a million dollars when cyber-crooks hacked his computer and transferred money from his business account. He has since increased his computer protection and invested in computer crime insurance.

Protect Your Business Against Computer Crimes

Should I be worried about computer crimes?

The FBI says computer crimes are growing at an alarming rate. Hackers are skilled and often very patient – once they’re in your system, they may watch your operations for months before striking.  And if they successfully drain your finances, some banks will not reimburse you for the loss.

How can I protect my company against computer crimes?

The Federal Communications Commission recommends the following:

  • Train employees in security principles.
  • Protect information, computers and networks from viruses, spyware and other malicious code.
  • Provide firewall security for your Internet connection.
  • Download and install software updates for your operating systems and applications as they become available.
  • Make backup copies of important business data and information.
  • Control physical access to your computers and network components.
  • Secure your Wi-Fi networks.
  • Require individual user accounts for each employee.
  • Limit employee access to data and information, and limit authority to install software.  

In addition, consider getting computer fraud insurance to help protect your company from losses and lawsuits that could result if you become a victim of a computer attack. National Public Radio recently reported that the proliferation of computer crimes has spurred demand for computer crime insurance.

What is computer crime insurance?

Computer crime or cyber fraud insurance covers losses resulting from intrusions into your company’s systems. According to an  article in ComputerWeekly.com, computer liability insurance can cover the following:

  • Data breach/privacy crisis management cover – expenses related to the management of an incident, the investigation and remediation
  • Multimedia/Media liability cover – damages covered can include specific defacement of website and intellectual property rights infringement.
  • Extortion liability cover – losses due to a threat of extortion, professional fees related to dealing with the extortion
  • Network security liability – third-party damages as a result of denial of access, costs related to data on third-party suppliers and costs related to the theft of data on third-party systems.

 

What’s the best way to buy computer crime insurance?

A qualified insurance broker can help you determine the best policy to protect your business. Many business owners have turned to Peter Green Insurance Agency for advice.  Our staff can show you a number of computer crime insurance policies and help you select one that will work for your business.  Give us a call today at 888.725.7776 or 714-258-2800