Church Cyber Liability Trends

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Cyber Liability Trends

Cyber Liability continues to be a major issue for many churches. Is Cyber Liability part of your Insurance Program? In today’s data-driven social media world, businesses of all sizes have had a cyber-attack or data breach. Statistics show 40% of all cyber incidents affect businesses with fewer than 100 employees.

Here are a few examples:

  • A University of Texas student hacked school network and stole 4,719 student and faculty social security numbers.
  • A hacker successfully obtains sensitive personal information from the insured’s computer system. As a result, a number of donors bring a claim against the insured for allowing access to their personal information. Total cost to business was over $75,000.
  • The insured’s Chief Customer Service Officer has his laptop stolen. The laptop contains over 100,000 donor records, including their personal contact information. Notification cost ran over $200,000.
  • An insured receives an email that appeared to be from its bank but was not. The insured’s employee opened the email, which activated a computer virus called a Trojan horse that reads key strokes from their computer. The perpetrator used this means to obtain banking and password information and initiate a fraudulent electronic wire transfer from the insured’s bank account Total loss to business was $55,000.

Some Items to Consider

  • With more companies beginning to store information on the “cloud” there will be more universal breaches causing greater losses.
  • Cyber Liability insurance is a real option providing value added coverage and services.
  • Industries most exposed are; healthcare, medical, retail, financial institutions, technology and hospitality,
  • Cyber recovery costs are rising, even with new technology.
  • Individual states will be beefing up mandatory reporting laws and imposing fines for lack of reporting.
  • New technologies will allow cyber-attacks to come through smart phones and tablets.
  • Small businesses may be the most prone, as they have the least protection.

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