Fiscal Firewall: Tech Group Offers Insurance Against Cyberthreats
The Washington Technology Industry Association, that state's leading tech trade group, is providing its members a benefit that reflects the times: insurance against technical and brand damage caused by cyberattacks.
You’ve read the stories recounting password breaches, stolen hard drives, email archives uploaded wholesale to WikiLeaks, swiped customer credit card numbers, identity theft, and a lot of other nasty things.
A lot of companies and industries are understandably concerned that they might be next in line for a nasty cyberattack or security breach like the ones listed. The Washington Technology Industry Association (WTIA)—representing members in a state that counts notable firms such as Microsoft and Amazon as residents—is in a position to break new ground in protection against these dangers.
Its solution? A new kind of insurance.
Last week, WTIA announced that it was launching a new Cyber Liability Protection program for its 8,400 members. The program is a set of packages that offer assistance when hacking causes business disruption, brand troubles, or financial crises. In a news release explaining the offering, WTIA suggested that, like the industry it represents, it was simply ahead of the curve.
“Cybertheft is the fastest growing crime in the world and most employers don’t have basic solutions and processes in place to manage the risk,” WTIA COO Mike Monroe explained. “We believe companies that conduct business with large organizations that store mountains of confidential data will soon be required to have cyber insurance. A WTIA cyber-insurance policy ensures that you have the right protections in place to work with these industry leaders.”
The association’s offerings, designed for small and midsize companies, offer $1 million in cyber-liability offerings at the lowest level. Enhanced offerings, which focus on specific challenges like extortion, business interruption, and privacy protection, are available at an additional cost. The various packages will cost companies $750 to $2,500 per year.