Expanding Security Breaches Fuel Mushrooming Demand for Cyber Liability Coverage Among Businesses of All Sizes, Across All Industries

Cyber security breaches, whether the result of cyber attack, internal or third-party data center error or simple carelessness, have never only been a problem or concern for the largest financial institutions or Fortune 500-sized companies with massive IT infrastructures. Small- and mid-sized businesses must also do all they can to protect the integrity of client and company data against a backdrop of tightened government regulations, growing personnel costs and budgetary concerns. While firewalls and other technologies can block many malicious trojans, worms and viruses, just a single security breach can wreak havoc on a business’ reputation, bottom line, even its very existence.

Cyber liability insurance for businesses of all sizes has never been a luxury. Now, more than ever, it has become an absolute necessity, according to Michael Palotay, senior vice president, Underwriting at NAS Insurance Services, Inc., an Encino, Calif.-based liability provider. This is especially true in the healthcare and retail sectors.