Saturday, March 17, 2018

Delaware Business Insurance Update From CNC Insurance Assoc. "The Universal Connection of Everything To The Internet Will Change Your Business Insurance" 3-17-18

Many experts are predicting that over the next decade there will be over 50 billion devices connected to the internet. Business owners will need to adapt their insurance and risk management portfolios to protect themselves from the "internet of things".
Here are some thoughts:

Who owns the data?  With all the data going from devices to vendors , does the business owner still own that data and is the business liable if that data does harm?

The internet is global, is your insurance protection worldwide?  Most will find out that it is not. Does this mean business owners will need global protection?

Social engineering fraudsters dupe employees into being unwitting participants in cyber crimes. Does the business insurance policy cover these issues? Is the business owner liable?

Denial of Service attacks on businesses is increasing, does the loss of income protection in an insurance policy cover if the business is shut down by a hacker?

As you can see , business insurance will have to change to cover these risks. it is already doing just that. Cyber Insurance policies are covering first and third party claims like the ones above. These policies will need to be a regular part of the insurance portfolio. As of today however they are not. Many business owners still lack this coverage. Contact your insurance professional and find out how you can add cyber coverage. Until next time be careful out there and know your risks.

G. Kevin Nemith    CNC Insurance Assoc. / The Hilb Group