These days it seems there's a new story every day about asuccessful or attempted cyber attack. This activity continues to beamong the world's fastest growing criminal threats, and poses achallenging decision for companies considering adoption of the“bring your own device” (BYOD) trend in which employees use theirpersonal mobile devices such as tablets, phones, and laptops toconduct company business.

Allowing employees to use personal devices has both benefits anddrawbacks, particularly in industries such as insurance where manyemployees are traveling, out in the field and carry sensitiveinformation. On the one hand, allowing the use of personal devicesfor work can be cost effective, efficient and streamline employees'access to information. On the other, it may create severalpotential challenges and risks.

This provides an opportunity for agents and brokers to helpclients protect themselves against these risks by advising on theproper insurance, combined with a smart risk management strategy toprotect against the exposures associated with the BYOD trend.

Knowing & Managing the Risks

There are a variety of benefits to companies that allowemployees to use their own devices for work purposes, each of whichcan help impact the bottom line. First, allowing employees touse their personal phones, laptops and tablets eliminates apotential cost to the company: The organization does not need toprovide these items to employees who are traveling, regularly inmeetings, or working remotely. Additionally, this ability to stayconnected creates higher productivity and makes it easy to stay ontop of work and important issues despite being away from theoffice.

Being able to use personal devices also supports better customerservice, as employees are enabled to respond to client needs inreal time.

The threat of cyber crime is a reality all companies face today,regardless of whether or not an organization has embraced BYOD.Cyber criminals can get through a company's firewalls, send virusesand hack into company-wide or individual accounts. However,organizations can put certain protections in place to minimize thelikelihood of breach and monitor those protections closely. Withpersonal devices, however, companies have significantly lesscontrol over how or where the device is used and lack the oversightthat exists with in-office technology.

That lack of oversight can translate into increased likelihoodof personal mobile devices being hacked. Typically, companies willrequire employees to use sophisticated passwords and will ensureany confidential information is also kept secure by passwordprotection and limited access.

Employees today are also commonly storing information in theirpersonal cloud to access it from their mobile device. According todata from network security firm Fortinet, 89 percent of youngworkers have personal cloud storage. Seventy percent of thoseindividuals use that storage for work-related files, and 33 percentstore customer data on their personal cloud, allowing them to gainaccess to it from their mobile devices.

Hacking and viruses aside, an equally damaging threat is simpletheft. Roughly 1 in 3 robberies in the U.S. involve mobile phones,according to the FCC. Laptops and tablets are also frequent targetsfor criminals. Once a criminal has a physical device, anyinformation contained within it–or available through it–is at riskof exposure.

When criminals secure confidential information, it puts thecompany at risk for not only corporate data and information beingexposed, but also for clients' personal information to be comprisedor stolen, allowing criminals to potentially commit identity theft.

Supplying a series of best practices for employees who choose touse their own devices can be one way to help manage exposures.Simple steps, such as enabling auto-lock on devices, adoptingpasswords that combine letters, numbers and symbols and ensuringemployees keep the devices in a safe place at all times can go along way in minimizing risks for hacking and theft. In addition,requiring employees to engage with the corporate IT department canhelp them not only understand the exposures their mobile devicespresent, but will also give them the resources they need to put thebest possible protections in place.

In the event a laptop is stolen, a phone misplaced, or anaccount hacked, cyber risk insurance policies can serve as a safetynet. From providing the resources needed to stop and investigate anincident to delivering necessary financial support, cyber riskcoverage can help companies minimize both their financial andreputational risks.

The Key to Selling Cyber: Custom-TailoredSolutions

Cyber liability policies can cover a range of costs associatedwith data and computer security breaches, including, legal andregulatory defense costs, fines and penalties, breach notificationexpenses, legal assistance to help manage a breach as well computerforensics to determine the scope of a breach. Additionally,some cyber polices will also include coverage options for businessinterruption expenses related to cyber events, cyber extortionexpenses, data restoration costs as well as media liabilitycoverage. To offer clients the best cyber solutions, it isimportant that agents partner with insurers that offer specializedcyber coverages and expertise, combined with a variety of tools tohelp insured manage their risks.

Today, cyber coverages address a wide range of risks associatedwith different sizes and types of businesses. The best insurerswill offer flexible solutions that include standalone policies formid-sized to Fortune 500 companies or as an add on to otherpolicies, for smaller companies buying a Business Owners Policy.The best policies offer tailored industry solutions fororganizations with unique risks such as financial institutions andtechnology companies.

Unlike other policies, in addition to a risk manager, producersmay need to speak with a broad range of executives at a company tohelp them understand that cyber coverage can help to minimize boththeir financial and reputational risks, including a chieftechnology officer.

By highlighting risk management trends such as the challengesand benefits of BYOD, producers will help add value to clients andpotential clients, positioning themselves as true riskprofessionals that can help institute best practices and manageexposures.

Timothy C. Francis is Second Vice President for TravelersBond & Financial Products in Hartford, Conn. Francis leadsTravelers' Business Insurance Management and Professional Liabilityinitiatives and serves as Enterprise lead for Cyber Insurance.Contact him at [email protected].