| The ubiquity
of the Internet has allowed businesses to distribute information
to an unlimited number of people in just a matter of seconds.
However, the very benefits of the Internet that breed instant
communications also expose companies, their employees and their
customers to significant threats, such as the loss of intellectual
property, disclosure of private information, malicious viruses
and worms that halt service, and personal identity theft. These
problems often result in business disruptions, lost productivity,
increased infrastructure costs and expensive legal proceedings
brought on by employees and customers.
Companies generally believe the biggest threats come from
the outside, but according to recent industry research, insiders
cause more than 50% of information leaks. “There
is no limit to the kinds of businesses that can fall victim.
Any company that operates an Intranet, engages in e-commerce
or electronically stores sensitive customer or employee information
is at risk,” notes Beth Romanowski, CIC, AU,
an insurance marketer and technology specialist for The NIA
Group’s Technology Division. “Basic steps, like
limiting employee access to highly sensitive information and
mandating complex passwords that change periodically can help
reduce risk dramatically,” she notes.
Even with these backup recommendations, however, there is
always the risk that someone can break into your system and
damage or steal all of your data. Discovering intellectual
property and identity theft too late can threaten the life
of a business, with damaged or stolen data resulting in millions
of dollars of financial loss—something many companies
could not withstand.
“To offset the real potential for this kind of loss,
businesses need specialized network security protection, which
is not usually included in traditional business property,
general liability or professional liability coverages,”
notes Elio Vecchiarelli, vice president of sales management
and a technology specialist for The NIA Group. “The
country’s major insurers have developed specific insurance
coverages to protect companies in the event of an Internet
or computer-based attack or accident. The NIA Technology Division
works closely with all of them to provide individual client’s
with the best protection for their specific needs,”
Network security liability insurance
to cover damage and litigation costs suffered by
others in the wake of a computer attack upon your network,
including liability caused by transmission of a computer
virus, unauthorized access, denial of service, disclosure
of confidential information and identity theft.
Comprehensive computer attack coverage
for any unauthorized access or use of the insured’s
computer system resulting from a breach of security, such
as denial-of-service attacks, computer viruses or other
malicious code. These can involve internal employee attacks
or external attacks that breach your client’s security.
The coverage can apply whether the attack is specifically
targeted or widespread, fraudulent or accidental and malicious
Broad-based, Internet professional
liability coverage for errors and omissions liability
arising out of a comprehensive list of Internet professional
services, including application service providers (ASPs),
Internet Service Providers (ISPs), managed and network security
services, hosting, media services, e-commerce transaction
services, web portals and search engines.
Network business interruption coverage
that protects the insured's income, both online and offline
resulting from a computer attack.
Identity Theft Insurance
for liability arising from the theft of personal information
of the insured's employees or customers resulting from a
breach of network security.
Physical Theft of Data coverage
for the liability associated with physical theft of computer
hardware or firmware containing information assets.
Information asset overage
for the damage, destruction, corruption or theft of important
information assets due to a covered computer attack.
Cyber extortion coverage
for the investigation and settlement of a cyber-extortion
threat against you, including criminal rewards coverage
for information that leads to the arrest and conviction
of individuals committing or attempting to commit a computer
attack or other qualifying criminal acts.
To learn more about the types of technology coverages available
to help you protect your business, your customers and your
employees, contact Elio Vecchiarelli of The
NIA Group’s Technology Division at (732) 933-4500 or