Hey, everyone. Chris Gaffney back for another weekly tech tip video for KRS IT. This week, we're gonna talk about something that keeps coming up in every meeting I have. More and more business owners are asking: Should we have Cyber Security Liability Insurance, and why do we need it? So we're gonna quickly discuss that.
Alright, so it's no shock to anyone or no surprise anymore, that more and more security breaches are happening. More and more companies are getting hacked every day, and precautions need to go up. So proactiveness needs to be discussed, and people really need to start taking security seriously, if they wanna continue to operate and stay in business. So one thing that we noticed a trend in the industry was the more meetings that Joe and I were having, the more companies are starting to ask about Cyber Security Liability Insurance. Do they need it? Should they have it? The answer is yes, honestly. You should have it today.
But here's the problem. A lot of companies even have old policies, where they've been paying for these policies and these premiums, and they don't have the pieces in place to actually qualify for it, because things have changed and these insurance companies. A lot of them are not reaching out to update you and let you know you need “X and Y” to be able to file a claim. So what's happening is you're getting breached, they're filing claims, and then the insurance company is then asking them after doing a forensic test and saying: “Hey, do you guys have this? Do you have that? Do you have this?” And when they realize, no, we don't have any of that stuff, the insurance company will just claim gross negligence and deny the claim.
So nowadays, you really need to take this seriously. If you guys have an IT company, reach out to them and tell them, say: “We wanna get Cyber Security Liability Insurance. Help us pick out one. Help us go through the things that we need to make sure that we qualify.” More and more companies are realizing this is a necessity, it's not an addition to what they've already had. They definitely need it. Look at the data breach that just took place, right. There is over 2.9 billion users affected. I think the United States has something like 360 million people. So it's a worldwide data breach.
You don't have to do anything wrong to get breached at this point. Majority of people probably are on the dark web or have been breached and their information is out there. So, if you're not proactively having the pieces in place to ensure that, if you did get breached, you're recoverable, then it's gonna be a big problem. So we don't want to see that happen to anyone. We don't want to see business owners worrying about this kind of stuff. It's avoidable, but you have to do your homework, and you have to have the right pieces in place.
If you guys want to follow-up, with any other questions for KRS, always reach out to us. Email us at: info@krsit.com. Happy to help! Hope everyone's having a great week! Talk to you guys soon!