Episode 5: Government Gets “D” Cybercrime Grade and Cyber Insurance with Greg Schaefer
“In Episode 5 of the Cybercrime and Business Podcast, the team discusses November’s cybercrime report cards. Four of the 12 industry sectors received grade of “C-” or worse, indicating increased risk compared to their six-month average. The government sector received the month’s worst grade of “D.”
This week’s guest is Greg Schaefer, president and founder of Schaefer Enterprises Inc., a Manhattan based insurance agency. He discussed various cyber insurance options and how businesses can use cyber insurance to help manage their risk.” Listen to the podcast here. (Greg is introduced at the 17 minute mark.)
Despite recent growth in the cyber insurance market, driven in part by a half dozen high-profile breaches making headlines in 2014, there’s still a high level of confusion about coverage from business owners and even those who write the policies – as new attacks and new court cases continue to define the market.
“Look at the Sony malware case,” said Greg Schaefer, president and founder of Schaefer Enterprises Inc., a Manhattan-based insurance agency, on last week’s Cybercrime and Business Podcast. “Trying to determine the cause of loss and how the policy language is going to react to these situations and ultimately pay back and reimburse the insured, which is Sony – these are all things that are new to the industry, and they haven’t been time tested.”
Many smaller merchants don’t even realize that they are responsible for the security of the transactions they process.
“A lot of people who take a credit card think the merchant company is responsible if something happens,” Schaefer said, adding that he encourages business owners to simply call them and ask. “What they found out 100% of the time is that it is their responsibility.”
