Privacy & Network Security Insurance: What the Board Should Know
Privacy & Network Security insurance focuses on the daily cyber risks that companies face. Thousands of network security breaches occur every day. While many boards and top executives are aware of the threat, many leave it to their IT personnel to handle. However, there are multiple risk mitigation strategies that don’t require any technical know-how that a company’s board can implement.
Involve your employees. Company education is a key but often overlooked tool for network security. Employee mistakes and risky behaviors account for a significant proportion or security breaches. Accessing restricted accounts, losing company cellphones or laptops, sharing passwords, transferring files between work and home- there are many ways employee behavior threatens company security. One national study found that seventy percent of IT professionals believe the use of unauthorized programs resulted in as many as half of their companies’ data loss incidents. This is why employee education and training on cyber-security issues is key to data safety.
Increase communication with IT. Too often, executives view breaches or security issues as “IT problems.” Instead, it is crucial for a board to develop an incident response plan that involves a coordinated effort between IT and top company executives. Address issues including the notification policy related to a cyber-security incident and privacy requirements. Is it clear which type of events require the board or directors to play a key role in response efforts and which they only need to receive an update after the fact? Discerning the different levels of cyber-security issues can help formulate a better plan of attack.
There is a lot to be aware of when it comes to Privacy and Network Security. In addition to potential third-party liability damages, your client could be at risk for direct costs from a number of sources, including fines and penalties assessed as a result of regulatory action. PLRisk Advisors’ Privacy & Network Security coverage is the solution to helping your customers manage and protect against risk. Contact us today for more information.