Tuesday, March 27, 2012

Cyber Liability

Computers are integral to most of our businesses. While this allows us to do business more efficiently it also comes with unique risk. Hackers,worms,employee sabotage can literally shut down our businesses. We also have liabilities for private information getting out. This information includes social security numbers, credit card numbers, drivers license information and medical records that get released to the public.

I recently had a client who owns a restaurant where credit card information got released to the public. As a result Master Card is looking to collect $200000 in fines and he is also looking at numerous credit card holders bringing action against him. Visa has recently stated that 95% of the credit card thefts are from small businesses.

Do you have procedures in place to protect yourself from these mishaps? I am currently setting up a list of questions small businesses should be addressing to properly protect themselves. I should have this completed in the next week but if you have any thoughts on what are procedures small businesses should put in place please let me know.
You also might be interested to know that you can also purchase cyber liability insurance coverage. Talk to your insurance broker about this.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

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