Why Cyberliability? Because You’re a Part of the Matrix, of course

We Shun What We Do Not Understand

Most of the time we avoid buying things or paying for services we don’t understand.

There are times when I don’t visit the doctor or go to the auto mechanic because I don’t understand how they decide the appropriate actions to take.

My shoulder hurts a little (and has been hurting for about 5 months now), but I don’t want to see the specialist because I’m scared they’ll tell me that I will need to get X-Rays and MRIs and then have some kind of Tommy John surgery and go through all these other therapies. I don’t have time for all that.

As far as mechanics are concerned, I’ve seen one two many 6:00pm evening news stories on local mechanics conning unsuspecting vehicular idiots. I’m one of those vehicular idiots who can hardly tell a timing belt from a carburetor.

Cyberliability: Baffling But Essential

Cyberliability insurance falls into that category for many consumers. It’s an avoided topic and coverage because nobody really understands what a claim would look like and what the insurance would do should an incident occur.

The purpose of this post is not to convince you that you have to buy the policy or to give you all kinds of details about cyberliability (there are plenty).

The purpose of this post is simply this: You should research cyberliability simply because data, your devices, and your computer systems are central to your work and life. 

Insurance products are built around the things that are central to our livelihood:

  • Homes
  • Cars
  • Health
  • Business property and liability exposures
  • Fine arts and expensive jewelry.

The data that is at our fingertips on a day to day basis is some of the most important property we work with day and day out.

Our computers hold client, employee, volunteer, and donor data. Our computers hold all of the tools we need to do our work.

If for no other reason than the sheer monumental centrality of technology to our ability to communicate and get work done, all business leaders should begin to work toward an understanding of cyberliability coverages.

There are a ton of reasons to be overconfident in risk management measures. Obsessive backing up of data. Cloud computing. Firewalls. Beliefs that ‘we’re too small for  hackers to worry about us.’ All of these beliefs prevent small business and nonprofit leaders from learning about how data insurance coverage works.

That said, it is a good idea to understand the costs associated with data-driven and cyberliability insurance claims.

We are, more or less, for better or worse, plugged into a sort of matrix (although I wish we could download Kung Fu like Neo instead of candy crushing skills).  We should learn more about how to navigate situations that could cause damage to those systems we so strongly depend on.

I’d love to hear your thoughts in the comments:

1. What do you know about cyberliability?
2. Do you or your nonprofit have the coverage?
3. Why do you think it is important (or why not)?

 

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