Rhinebeck Rotary Features Presentation on Cyber Insurance
On Monday, July 21st, during its regular meeting at the Beekman Arms, the Rhinebeck Rotary featured a presentation on the new field of cyber insurance by Addam Rakow, insurance broker at the Rhinebeck insurance company Fraleigh & Rakow, and the son of longtime Rotarian Greg Rakow.
Rakow called cyber insurance “a fledgling segment of the insurance industry,” and stated that the reason it has become a separate type of coverage is the growing list of exclusions named in general liability insurance policies, exclusions that leave businesses and individuals vulnerable to claims. “Insurance is constantly evolving. Computers weren’t even part of the Internet, when they first appeared on the scene,” Rakow said.
He cited a number a recent hacking incidents including Target, TJ Max, the Veteran’s Administration and Sony Playstation, and went on to name the kinds of costs incurred by a business after such a breach: loss of identification and assets, loss of client records, loss of employee privacy security, business interruption, the expense of rebuilding data and credit monitoring, forensic CPA fees, and the potentially huge P.R. expense necessary to notify customers and clients afterwards. Cyber insurance would cover such losses, costs and inconveniences, while general liability insurance would not. In conclusion, he recommended that individuals check their standard home insurance coverage to determine whether or not it excludes the personal injury that might ensue from viruses accidentally sent on social media sites such as Facebook and Twitter, in which case, one should consider buying back that exclusion.
The Rhinebeck Rotary Club meets on Mondays at 12:15 pm at the Beekman Arms throughout the year. The Rotary is a humanitarian organization dedicated to enhancing the lives of others through local, national and international service projects. The weekly meetings feature speakers covering a variety of human interest topics. For more information on becoming a member, or to reserve a speaker’s spot at an upcoming meeting, please call David Albahary at 914-244-0333.