The Expert Podcast

Here's another very good reason to have a viable cyber security cyber defense or cyber insurance for your business. If your business is hacked and you have losses and your customers' information is out there, your vendor information is out there, you could get sued or you could even be prosecuted as a company for releasing information about your clients. However, many states are now going to a safe harbor process. So if you do certain steps to have cyber security or cyber insurance or active monitoring or response, you could have a safe harbor to protect you from lawsuits because these lawsuits can get expensive. If you have a th000 customers and they can each sue you for $1,000 that's a million dollars you could lose. If they could each sue you for 10 million $10,000 that's $10 million you could lose. You don't want to be in a position to have to defend against those kind of lawsuits because if somebody breaches and hacks your company, they're not looking just to get your company data; they're looking to get all your customer records. And once those are out there, every customer that lost their records may have a claim against you for damages or even vendors or other people you do business with. So make sure that you look at the laws in your state, get good legal advice of what steps you can take or what insurance you need to get, and you can check our link below for insurance options to see if any of them will help you protect and insulate against lawsuits or reduce the probability you're going to have one of these claims. Because sometimes the biggest loss comes from having the not so much the ransomware but the customer information that's distributed in the dark net or dark web, and now your customers are looking at you as the perpetrator. So you may lose sales if you're a repeat business type of organization; your customers see that you're the one who got their data released, they might stop buying from you, whether you're B2B or consumer-based, you might lose half your customers because of this breach. So make sure that you do the right thing to protect yourself against the losses but also against future lawsuits that may come up if your data is breached.