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Protect your customers

Online shopping This is the busiest time of year for most retail businesses. What this means for many retailers is thousands of credit card transactions being completed at their stores, over the phone and online. Having their computers, phone and Web sites up and running securely is very important to the retailer right now.

In 2008, it was discovered that the retailer Forever 21 had 99,000 credit cards compromised between 2004 and 2007. 

That same year, Advanced Auto Parts also discovered that they had approximately 56,000 customers information stolen information from old data between December 2001 and December 2004. This information was found to not be encrypted and thought to have been deleted – but it wasn’t.

I have discussed employee dishonesty and e-risk in a couple of my past blogs and while these issues are important for a retail business owner, professional liability for Web site developers, computer programmers and consultants is equally important.

There are many situations that can occur to cause this profession to be sued.

  • A businesses website goes down and causes a business to lose income
  • Software that was installed causes a businesses network to crash
  • Breaches of security (firewalls, encryptions, et cetera) – a computer tech forgets to reset the firewall after installing new equipment or software.
  • A business is sued for copyright and trademark issues after they launch their new Web site and logo.

The list goes on and on, but I think you get the point. Having the right liability policy in place can protect against these issues and more depending upon your exposure.  If you are a retail business owner, make sure you are discussing your cyber risk with your agent. If you are in the computer industry, make sure you do the same.

The mistake you don’t want to make is relying on someone else to have coverage for your business.


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