By Drew M. Smith
The last few months have been rife with stories concerning cyber-attacks on major companies such as JPMorganChase, Home Depot and Target and now Sony. They were hacks designed to get information but as a whole they have not had large scale internal damage meaning nothing that couldn't be reliably contained once it was found.
Compared to the previous three, what happened to Sony is, and will probably be, even worse than possible hacking account numbers. In the last week, Sony, its film division Sony Pictures and its gaming network, the PlayStation Network, were hacked and their information was breached to the point it is borderline Cyber Terrorism. Among the things that were released were the salaries of their employees, personal information and even films were included in the data that was released to the public. Even worse were internal memos that have put the spotlight on the higher-ups and could end up ruining the company proper.1
Seeing all of these companies that poor billions of dollars into their security to prevent such an attack fall victim to such wide spread attacks should make everyone nervous. They have every right to be nervous: According to a 2012 Department of Justice report there were 16.6 million stolen identities and $25 Billion lost to hackers.2 In a 2013 report by Symantec in the nine countries where data breeches occur the most 37% are from a malicious or criminal attack.3 Even with the best security possible, breaches still occur.
One way to mitigate this risk is to have a properly structured privacy insurance policy. Each company’s individual needs are different and their coverage should reflect this. You should rely on an expert broker to help ensure you are properly protected. In this world that has become even more connected by technology having the right cyber coverage to protect your employees and your company is integral to help mitigate damage like what must be happening at Sony.
The advice in this article is not to be taken as legal advice. Consult with your attorney before implementing any procedures.
About Axis Insurance Services, LLC
Axis Insurance Services, LLC (AIS) is a licensed professional liability insurance broker located in Franklin Lakes, NJ with agents licensed nationwide. They offer access to high-quality insurance products in the areas of Errors and Omissions insurance (E&O), Directors and Officers liability insurance (D&O), Crime, Fiduciary, and Privacy/Network security coverage for today’s professional service firms. AIS works with all company types including commercial real estate firms, real estate agents and brokers, property managers, insurance agents, medical groups, practice managers, third party administrators, lawyers, accountants, architects, engineers and many others.
Axis Insurance Services, LLC is not affiliated with Axis Insurance Company or its subsidiaries or affiliates in any way.
Please note that the above information does not constitute any legal advice. You should consult your attorney prior to implementing any employment related policies and procedures for your company.