Even with large scale data breaches making headline news across the country, insurance and legal experts say that “too many companies remain ignorant of the risk.”
Jim Giszczak, a specialist in cyber-related legal issues for McDonald Hopkins PLC, stated, “Companies often assume they’re covered by their regular insurance policies, but if they haven’t bought specific cybersecurity policies, they aren’t. It’s still a relatively new area of coverage, and most clients don’t realize they need it. They might have business interruption insurance, but that won’t cover their losses if they have a data breach. They need true cyber liability coverage. We make sure they have policies in place.”
David Derigiotis, group vice president and director of professional liability for Burns & Wilcox added that cybersecurity is “still a very underserved area. Most businesses don’t understand their exposure. Most small- and medium-sized businesses don’t realize they are being targeted.”
Read Crain’s Detroit Business to get a better idea of what the experts are saying about the best ways that small and medium sized business can prepare for cyberattacks and data breaches.