cyber liability insurance business westchester ny
  • By Allan M Block Blogging Team
  • Posted July 28, 2019

What Happens If The Cloud Gets Hacked?

These days, everyone uses a Cloud system of some sort. Businesses are also utilizing this technology, whether it be for storing client information or processing payments through a Point of Sale system. But what happens if the Cloud gets hacked?

Your company may be under the impression that the Cloud will protect or defend you in the event of a cyber-attack. The unfortunate reality is that they will not. In terms of contractual obligations, a third-party Cloud company is only required to inform you, their customer, that a hack has occurred. It’s also worth noting that your clients are not considered to be customers of the Cloud company. This gives the Cloud even less responsibility towards protecting your clients and their information. They have no requirement to inform your customers, nor to help you deal with the fallout caused by the attack. Keep in mind that the Clouds are managed by private companies, and that the fine print of the “Terms of Agreement” that you must accept in order to use the service is written to protect that company’s interests, not your own. That contract does not offer you protection against hacks, and it does not require them to assist you with response.

This is where Cyber Liability Insurance becomes key. Think of it as a built-in support system. Your cyber policy will come in to assist you as you address legal issues, report the attack to clients, deal with the possible PR fallout, and figure out what happened. Rather than facing these challenges alone, you have a team of experts on your side who have experience in dealing with these claims. Contact our Vice President of Commercial Lines, Laura Murray-Faggella, by phone at (914) 631-4353 ext. 144 to find the policy that best fits your needs.


For more information or answers to your insurance questions, contact us at Allan Block Insurance gency, https://www.allanblockinsurance.com, located in Tarrytown, NY in the heart of Westchester County, a key business district near New York City.  We write auto, home, renters, condo, co-op, personal, business, life and group insurance for clients locally and in NYC, CT, NJ, PA, MA and many other states. The Professional Agency with the Personal Touch.

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