Cyber Liability Insurance: A Growing Need on Campuses Nationwide

New York (10/24/16) —  October is National Cyber Security Awareness Month (NCSAM), but many leaders of higher education institutions are not aware just how grave a threat a security breach on their campus poses due to the quantity and various types of data they capture, store, and transmit. According to Segal Select Insurance, many key decision-makers may be unaware of the availability and importance of having a cyber liability insurance policy. Having a policy can provide assistance in response and recovery from a breach and for protection in the event of fines, penalties, litigation and other collateral damage.

“Many institutions have legacy systems and limited IT budgets to install state of the art security controls,” commented Mark Dobrow, vice president with Segal Select Insurance. “These less than perfect controls can lead to unauthorized network access by hackers both inside and outside of the institution, as well as negligent data releases by faculty, administrators and even students due to open networks and Bring Your Own Device (BYOD) protocols.”

Mr. Dobrow added that limited budgets shouldn’t be an excuse to not have a cyber liability policy.  “Purchasing an insurance policy is neither as expensive nor as difficult as many seem to believe,” he said. “And without it, the time and cost of addressing breaches will be much more difficult and stressful. The tradeoff really is a no-brainer.”

To speak with Mr. Dobrow on what higher education institutions should know about their own risk of cyber attacks, and for approaches they should take towards purchasing a cyber liability insurance policy, please contact me.

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Segal Select Insurance Services, Inc. (www.segalsi.com), tthe insurance brokerage subsidiary of The Segal Group, Inc., works with plan sponsors and Boards of Trustees to obtain a full range of fiduciary insurance and fidelity bond coverage as well as employment practices liability insurance and cyber liability coverage. Segal Select’s brokers are licensed in all 50 states.