Why Network Security Insurance for Universities is Essential
Many college and university administrators mistakenly assume that network security insurance for universities is not necessary for them, because they will never have a data breach. Insurance experts compare this to assuming that a business will never experience a fire, and thus not buying property insurance. Your educator clients are just as prone to a data breach as large companies who have actually experienced a breach, such as Target, and even Nasdaq. In fact, educational facilities are in the top ten industry classes that are considered “high hazard” when it comes to a data breach.
When you think about how much information is stored in the computer database for most educational facilities, it’s easy to see why network security insurance for universities is a good idea. Malicious threats exist in the form of stealth hackers, malware, or extortion. More often a data breach is a result of a non-malicious threat, such as a lost employee laptop, or a marketing or vendor leak. It’s vital that this information is protected though, as colleges and universities collect sensitive information such as health records, financial information, and social security numbers.
The student and employee data that universities carry is protected by many regulations, such as:
- The Family Education Rights and Privacy Act (FERPA)
- The Health Insurance Portability and Accountability Act of 1996 (“HIPAA”)
- Federal statutes and state data privacy laws
If a university is found to have violated any of these regulations, even if unintentionally, they face the risk of a costly lawsuit. This can be financially devastating to a university, especially a small college. Network Security Insurance for Universities will cover the costs incurred following a data breach or cyber-attack.
At PLRisk Advisors, we understand that all industries carry the risk of a Privacy or Network Security breach. We provide coverage for all classes of business, including hard-to-place risks, and offer tailored policies depending on the client and the industries they serve. Please contact us today for more information at (855) 403-5982.