Following the March 29th data breach announcement by Toyota Motor Corporation – Japan, the issue of cybersecurity and cyber liability has once again resurfaced as a top concern for businesses of all sizes.
Ranked #6 in Fortune’s Global 500 list, Toyota Motors is among the highest grossing companies in the world – but that hasn’t made it immune to the greatest emerging threat facing businesses across the globe: cybersecurity attacks. In a press release, the corporate office alerted Japanese consumers about a potential data breach on March 21, 2019 involving five of its Tokyo-based subsidiaries and five additional local partners, and there’s concern that up to 3.1 million customers may have been affected.
In its statement, the company said: “[t]he information that may have been leaked this time does not include information on credit cards. We have not confirmed the fact that customer information has been leaked at this time, but we will continue to conduct detailed surveys, placing top priority on customer safety and security.”
This data breach comes just one month after Toyota Australia also announced it had been a victim of an attempted cyber-attack – leaving companies with significantly lower resources wondering what they can do to protect themselves and their customers when even massive corporations are struggling to do so.
Mitigating Cybersecurity Exposures with Cyber Liability Coverage
There’s no escaping technology in today’s world. Even the local coffee shop seems to be embracing modern tech – with cutting-edge payment processing solutions, app-based rewards programs, and text alert marketing campaigns. But, as Marvel’s Ben Parker always said, “with great power comes great responsibility.” As companies access and store more consumer information, their exposures and liabilities increase exponentially.
That’s why cyber liability insurance is increasingly being considered one of the most important types of coverage for small, medium, and large-sized businesses. Cyber liability insurance is specifically designed to address the risks that come with using modern technology – risks like data breaches, system failures, and cyber extortion – which aren’t covered by other types of business liability coverage.
Addressing Evolving Cybersecurity Regulations
Additionally, the past several years have seen increasing changes to laws, regulations, and best practices – such as the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). While these are designed to address the privacy and safety of consumers, they can result in another layer of fines and legal troubles for businesses who experience cyber-attacks.
The takeaway? As more businesses continue to be impacted by evolving regulations, discussions about risk, responsibility, and cyber liability coverage should be happening in every board room and strategic planning session.
Are you certain that your network is impenetrable by hackers? Are you sure that none of your employees would accidentally open a phishing email or download an attachment with a virus? Do you know what would happen if customers’ information was illegally accessed? Cyber liability insurance can provide the protections you need to recover if the unthinkable were to happen.
Explore Your Cyber Liability Coverage Options
At Swarts, Manning & Associates, we provide a unique perspective on all of your commercial coverage options, and we help to determine which carrier best fits your business needs. We strive to find you the broadest coverage at the best available rate. Give us a call to get started: (833) 878-2820.
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