Why Information Sharing Impacts Your Business

Information sharing has continued to make headlines across America - the government, private companies, organizations, universities, small businesses and even individuals have all been uniquely impacted.

Sharing personally identifiable information and internet activity data information is a huge concern – there are those who believe our networks would be more secure and others who believe it might tempt the government to use it for other purposes.

There have been several attempts to provide solutions on both sides of the issue, but the delicate balance between employee privacy and company network security remains unattainable for today.

What’s all the buzz about? CISPA
The Cyber Intelligence Sharing and Protection Act (CISPA), was originally created to help assess and investigate cyber threats, by sharing crucial Internet information between communication service providers and the U.S government.

The primary purpose of this information sharing is to provide the government with a system in real-time with early warnings that could help prevent an attack before it happens.

The broad nature of CISPA permits U.S. communications service providers to share an individual’s personal emails, text messages, or stored files on the cloud with the government.

A recent amendment to CISPA has also allowed U.S. employers to ask prospective employees to disclose their social media passwords as a condition of employment. But the amendment was recently voted down in the House of Representatives.

Why is this so important to your business?
Gaining access to passwords for social media accounts could help determine if a prospective employee would be the right fit for your company, but it may also come with tremendous risk to your business.

Since there is no clear definition of “cyber security” and the overall legislation has not been solidified, there could be current loopholes which might allow prospective or current employees to retaliate or bring a lawsuit against you when asked to submit their login information.

Protecting your business from a lawsuit should be a priority and ultimately, the insurance industry as a whole will respond by adapting its policies to match whatever version of CISPA will be signed into law. Until then, there will be more employment risks to face.

In the meantime, to ensure you are protected against these risks it’s recommended you purchase Employment Practices Liability insurance coverage. This coverage will provide protection for an organization or its employees from claims relating to wrongful employment practices.

Contact one of our professional liability specialists at 201-847-9175, they can answer your questions – learn more about how we can help protect your business.

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