Yesterday, TechInsurance announced that they have seen a major increase in the amount of cyber liability insurance over the past year, particularly from small and “micro” businesses. The company explained that this is directly tied to the rise of BYOD in many workplaces, and they cited a report from CDW that found only about half of SMBs feel they have an effective strategy in place for this rising trend.
Overall, TechInsurance reported a 200% increase in the number of cyber liability coverage for small businesses. BYOD, a growing trend and often viewed as essential to competition, can present challenges to smaller businesses that may not have access to dedicated tech departments.
Ted Devine, CEO of TechInsurance, elaborated on this point in a press release yesterday: “Without a technology department to effectively manage these devices, small and micro business owners need to ensure their insurance coverage is comprehensive and protects against risks of data loss, viruses, and malware on non-company devices.”
TechInsurance explained that there are two main types of insurance to cover any BYOD mishaps: Cyber Liability Insurance and Errors and Omissions Insurance. The Cyber Liability Insurance can help cover costs and liability associated with loss of data/data breaches and theft of mobile devices. Errors and Omissions Insurance can protect organizations from negligence claims. For example, if a mobile device was stolen or breached and this prevented an employee from finishing a time-sensitive project, this type of insurance would help with liability and expenses from any resulting case. TechInsurance strongly suggests having at least one type of insurance for any BYOD practice, and that organizations should also implement employee education programs and company-wide usage guidelines.
For more information about TechInsurance and their coverage, please visit the site here.