Cyber insurance is 'the price of doing business,' according to local firms

A data breach can cost a small business or doctor's office an average of about $200,000 in losses.

NEW ORLEANS -- Nine Chipotle restaurants across Louisiana were hit by hackers between March 27 and April 18.  That includes restaurants in Metairie, Elmwood, Slidell and Houma.

This is the latest in a long list of data breaches targeting companies such Target, Home Depot and Sony.

If you think your credit card information may have been compromised, it's important that you know what to do to protect yourself.

"You really need to change all of the account numbers, you need to, if it's a credit card, you need to get a new credit card with another number on it," Jefferson Financial Credit Unit President Mark Rosa said.

Rosa also advises that you check all of your credit and debit card transactions.

Some of the cyber criminals will make small purchases at first -- that may go unnoticed unless you're monitoring your charges.

"I wouldn't wait until the statement comes in," Rosa said. "I would look at the transactions online and get used to doing that and I think that's good insurance."

Speaking of insurance, some businesses are now taking out insurance to protect against damages from a cyber attack.

Most cyber insurance policies provide coverage for the costs a merchant may incur after a personal information breach as well third-party costs for defense and settlement of liability claims.

"It's a loss of reputation that they're going through as well as the notification process," Marc Eagan, President of Eagan Insurance said. "You're going to have to notify everybody that's been touched."

Eagan added, carrying cyber insurance is part of the cost of doing business these days, something he learned first hand.

"We got a small breach into our firm and it made our eyes wide open, so we knew there was a need," Eagan said.

A data breach can cost a small business or doctor's office an average of about $200,000 in losses.

© 2017 WWL-TV


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