Posted on May 19, 2014
As Cybercrime dramatically increases online, its effects are quickly being felt by Massachusetts businesses. According to the state's Attorney General, roughly 30 percent of the population has experienced electronic data breach of their personal, confidential data in 2010 and 2011. With the increase in the activities of hackers, viruses and other electronic data breaches, insurance companies created cyber liability insurance policies designed to protect businesses from liability issues surrounding improper electronic data release.
The State of Massachusetts passed a 2008 law requiring all companies to notify both consumers and state regulators when vital personal data is breached especially when it might be used for identity theft purposes. At particular risk is patient and medical history information stored with medical offices and facilities. The state's law dubbed the Massachusetts Standards for Protection of Personal Information of Residents goes a little farther than other state's similar personal information laws. The Massachusetts version applies to anyone whether person or business that has personal information on a state resident - even when that person or company is not located within the state. The law subjects violators to noncompliance penalties of $5,000 for each affected resident.
Massachusetts businesses can limit their risk by purchasing cyber liability insurance. The coverage protects from such issues as network & server attacks, extortion, credit monitoring, privacy, breach of contract, internet & media liability as well as defense costs, fines and penalties.
Each insurance company has its own unique policy designed to protect businesses they insure. Because there is no standard form of coverage, business owners should contact a professional agent to assist with evaluating cyber insurance to determine what internet insurance protection is the best fit for their needs.