Posted By: ITWiser Webmaster - Yorkshire's IT Specialists
Posted By: ITWiser Webmaster
Could Your IT Security Be Affecting Your Insurance?
A recent case in the USA has highlighted the fact that some insurance companies my now be looking to your IT security provision before paying out on any security related claims. This is potentially a minefield of issues for many smaller companies who maybe don’t think that their it security is of great importance.
The case in the USA centred around an attack on the IT systems of a Healthcare company, resulting in the records of 32,500 patients being stolen. The whole incident cost the healthcare company over £3m in compensatory payments to those affected. Fortunately their insurers underwrote this payment on this occasion.
Further to the investigation of this incident, it was found that the healthcare company had such poor it security, it only took one hacker searching on Google to find an anonymous FTP account that led them straight in to the systems.
The insurance company, a subsidiary of the Columbia Insurance group have argued that they are no longer liable for this loss. A clause in their insurance documentation states that the company should have provided appropriate security for its records and client documents. In this case the healthcare provider, Cottage Healthcare Systems consistently failed to run updates and patches to their systems, as well as leaving FTP sites open.
Even if your insurance company doesn’t insist on a particular type of security its worth checking out whether your systems are protected. Not only is a cyber attack costly but now may even be outside of your insurance cover too.