Computer crimes or computer security breaches employee data cost American companies a whopping $150 millions in lost revenues every year. This includes theft of information, sabotage of data or networks, system penetration by outsiders, abuse employee data of internet access, spoofing, viruses, financial fraud, active wiretapping, unauthorized insider access and theft of laptops, etc. These hackers could be amateurs simply motivated by challenge to crack a system, professional outsiders hacking to gain company information illicitly or an employee employee data hacker. Despite firewalls, computer security is inadequate against hackers.
Due to increased hacking activity and flawed employee data security, companies incur high financial and network damages. It becomes very important to take insurance policy specifically covering damages against hackers or protecting e-commerce business. Traditional insurance policies are inadequate against most aspects of crime employee data damages due to computers. Their coverage is based on physical assets, not information assets. They rarely can define cyber risk coverage and even if they do, the breach in security is excluded. Intellectual property infringement, content and advertising offences over the Internet, employee dishonesty and computer employee data fraud are all 'Greek' terms for traditional insurance companies. They do not recognize business monetary loss, reduction or shut down due to computer crimes by hackers.
Most insurance companies have come to employee data terms to recognize the impact of technology on business in present circumstances. They have become more sensitive to online or e-commerce businesses risks and cover them adequately. Since 2000, a few companies like Lloyd's of London, Zurich Insurance Group and Chub employee data Insurance Group are beginning to cover the computer security breaches. American International Group's Net Advantage Program addresses a host of e-commerce crimes like cyber extortion, content employee data defamation, copyright and trademark infringement, viruses, theft, destruction or alteration of data. They offer rewards for apprehending hackers and reimburse for post hacking crisis management. Many specialty insurers have come to the forefront to offer e-commerce employee data protection packages.