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Home-Grown Data Breaches: How the Internet of Things Is Increasing Your Exposure

Home-Grown Data Breaches: How the Internet of Things Is Increasing Your Exposure

As Internet of Things technology grows, IT contractor insurance can cover data breaches and IOT liabilities. Policies start at $85 per month.

Monday, June 09, 2014/Categories: cyber-liability

The investment resource site MotleyFool reports that Apple announced it would produce software designed to work with the Internet of Things, joining its competitors Google, Microsoft, and Samsung in the emerging home-technology market.

The software will allow people to use Apple devices to remotely control soon-to-be Internet-capable home technology, such as refrigerators, thermostats, and light switches.

While this futuristic home sounds like something you would see on the Jetsons, experts expect this new technology to grow at a rapid pace. Estimates for home-automation technology growth vary, with some research firms expecting it to be a $2 billion industry in the next few years and others expecting an $80 billion one.

Regardless of how rapidly home tech grows, IT security professionals know what it all boils down to: more potential for data breaches.

How Will the Internet of Things Affect Cyber Liability?

Just as the mobile device market created more ways for hackers to break into your data, the Internet of Things opens new doors for cyber criminals.

Remember that the IoT relies on software and hardware across many devices. Any time there are two devices, networks, or pieces of software that must work together, there is usually a greater potential for data breaches. The Internet of Things will drastically increase the number of connected devices, which will drastically increase cyber liability.

It also means that companies that are not used to worrying about cyber security will suddenly have to do so. When refrigerators are Internet-enabled, Maytag and Frigidaire will have to expand in new markets they're unfamiliar with. This could mean a serious growth in cyber liability.

While it may seem that the cyber risks associated with the Internet of Things only affect households, think again. Nearly every office has a fridge, coffeemaker, copy machine, etc. Your clients will suddenly have more devices and more software you'll need to coordinate.

New Data Liabilities for Internet of Things Technology

Forbes reports that both Apple and Samsung are making moves in health-monitoring applications. Health data is heavily protected by federal law. HIPAA and HITECH laws establish strict guidelines for protecting medical records.

While it's unclear whether health-monitoring applications will fall under HIPAA or HITECH authority, a data breach could mean cyber criminals have access to a wealth of personal data previously unimaginable.

Simply put: more technology means more data. And that means more liabilities for you, the IT professional.

Insurance Coverage for Less than the Cost of Your Smartphone Bill

The good news for IT consultants, tech contractors, and home businesses embracing new maker technology is that you can get insurance coverage that protects your business from data breach lawsuits.

The even better news: for an independent contractor working in tech, this insurance could cost less than your Internet bill. Coverage for contractors starts at around $85 per month.

When your clients are hacked, they can sue you for failing to prevent the breach. Errors and Omissions Insurance covers your liabilities, paying for your lawyers’ fees, court costs, judgments, and settlements.

IT Errors and Omissions Insurance adapts to changing markets. As your professional risks change due to new technology (like the Internet of Things), E&O Insurance will still cover your small business.

For a free quote on E&O coverage, submit our online insurance application for IT contractors.

Home-Grown Data Breaches: How the Internet of Things Is Increasing Your Exposure

The investment resource site MotleyFool reports that Apple announced it would produce software designed to work with the Internet of Things, joining its competitors Google, Microsoft, and Samsung in the emerging home-technology market.

The software will allow people to use Apple devices to remotely control soon-to-be Internet-capable home technology, such as refrigerators, thermostats, and light switches.

While this futuristic home sounds like something you would see on the Jetsons, experts expect this new technology to grow at a rapid pace. Estimates for home-automation technology growth vary, with some research firms expecting it to be a $2 billion industry in the next few years and others expecting an $80 billion one.

Regardless of how rapidly home tech grows, IT security professionals know what it all boils down to: more potential for data breaches.

How Will the Internet of Things Affect Cyber Liability?

Just as the mobile device market created more ways for hackers to break into your data, the Internet of Things opens new doors for cyber criminals.

Remember that the IoT relies on software and hardware across many devices. Any time there are two devices, networks, or pieces of software that must work together, there is usually a greater potential for data breaches. The Internet of Things will drastically increase the number of connected devices, which will drastically increase cyber liability.

It also means that companies that are not used to worrying about cyber security will suddenly have to do so. When refrigerators are Internet-enabled, Maytag and Frigidaire will have to expand in new markets they're unfamiliar with. This could mean a serious growth in cyber liability.

While it may seem that the cyber risks associated with the Internet of Things only affect households, think again. Nearly every office has a fridge, coffeemaker, copy machine, etc. Your clients will suddenly have more devices and more software you'll need to coordinate.

New Data Liabilities for Internet of Things Technology

Forbes reports that both Apple and Samsung are making moves in health-monitoring applications. Health data is heavily protected by federal law. HIPAA and HITECH laws establish strict guidelines for protecting medical records.

While it's unclear whether health-monitoring applications will fall under HIPAA or HITECH authority, a data breach could mean cyber criminals have access to a wealth of personal data previously unimaginable.

Simply put: more technology means more data. And that means more liabilities for you, the IT professional.

Insurance Coverage for Less than the Cost of Your Smartphone Bill

The good news for IT consultants, tech contractors, and home businesses embracing new maker technology is that you can get insurance coverage that protects your business from data breach lawsuits.

The even better news: for an independent contractor working in tech, this insurance could cost less than your Internet bill. Coverage for contractors starts at around $85 per month.

When your clients are hacked, they can sue you for failing to prevent the breach. Errors and Omissions Insurance covers your liabilities, paying for your lawyers’ fees, court costs, judgments, and settlements.

IT Errors and Omissions Insurance adapts to changing markets. As your professional risks change due to new technology (like the Internet of Things), E&O Insurance will still cover your small business.

For a free quote on E&O coverage, submit our online insurance application for IT contractors.

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