A breach of a printing company system shows the exposure to third party breaches, and the importance of Cyber Risk Insurance (also called Data Breach, Privacy and Network Security insurance coverage) for protection from situations outside your control.
According to a series of articles (see here & here), an IT firm (a third party) accidentally misconfigured backup protocols at a printing company (another third party) used by many different businesses, resulting in a breach of a wide range of confidential documents. The confidential information included social security numbers, credit card numbers, medical information and confidential legal information. So far, there is no indication that hackers have the information.
The printing company has responded by correcting the backup settings and tightening the security of its systems (see here).
The exposure to third party providers is significant (see here), as noted by Jeff Hill, director of product management at Prevalent:
The [printer] episode highlights the multi-dimensional nature of today’s cyber threat environment… Not only did it involve a 3rd party…, but in reality, the vulnerability was attributable to a 4th party (the IT company…), illustrating the danger in today’s extended data supply chain… The case exemplifies the importance of vendor diligence in the digital age for even what most would consider an innocuous sub-contractor, a printer.
Cyber Risk Insurance is an essential coverage for businesses of all sizes for protection from direct hacking attacks, and also from third party vendor breaches. Coverages vary widely, and so a thorough review is essential to ensure that comprehensive coverage is in place.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability and specialty insurance (E&O, D&O, EPL, Cyber Risk, Specialty). Cyber Risk Insurance is our specialty.
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