Cyber Threats: The Risks are Real — Protect Your Bookstore

Here, the American Booksellers Association and Arrowhead General Insurance Agency provide information about cyber insurance.

There are various insurance coverages that can assist in providing protections to you and your bookstore related to cyber threats. While we are in a time of crisis, there has been a notable increase in cyber threats over the past three months.

Cyber threats can come in many forms, such as phishing, malware, extortion, viruses, etc. Cyber insurance coverages can come in many forms as well. The below information provides details of coverages that are available. Coverages can be customized to your specific needs. For most bookstores, this coverage can be added through a simple amendment to your current insurance policy. The additional costs range from $100 to $1,000.

Many booksellers use the IndieCommerce or IndieLite e-commerce services offered by the American Booksellers Association. ABA has a broad cyber policy that may cover cyber issues related to your IndieCommerce or IndieLite website; however, it does not cover your bookstore network or any data breaches outside of the website. It’s important to maintain coverage on your individual business as well.

In the event your store needs to file a claim under your individual policy and the ABA policy as well, the claims adjusters will determine which insurance policy should be applied.

Bookstore insurance experts will be the featured presenters at ABA’s July 9 Technology Meetup, to be held at 1:00 p.m. ET, where they will provide additional education on the topic and answer questions booksellers may have.

If you would like a bookstore insurance expert to assess your cyber risks and protection, email [email protected]. Bookstore insurance experts will be in touch within 48 hours.

Cyber Coverage Fact Sheet

Cyber Coverage

Cyber Coverage is triggered by a “computer attack.” The following are situations that can be classified as a “computer attack”:

• Unauthorized access to your computer system by an unauthorized person or persons; or
• Malware attack – meaning damage to your computer system or data arising from malicious code, including viruses, worms, Trojans, spyware, and keyloggers.
• Denial of service attack – meaning a deliberate act to prevent third parties from gaining access to your computer system through the internet in a manner in which they are legally entitled.

The following may be covered under this coverage:

• Data Restoration: Cost of an outside professional firm hired by you to replace electronic data that has been lost or corrupted.
• Data Recreation: The cost of a professional firm hired by the insured to research, recreate, and replace lost or corrupted data from non-electronic source
• System Restoration: Coverage for the cost of a professional firm hired by the insured to restore its computer system to its pre-attack level of functionality by replacing or reinstalling software, removing malicious code, and correcting the configuration of the insured’s computer system.
• Business income lost by the insured and extra expenses incurred by the insured during the period of time when system and data recovery activities are taking place.
• Public Relations Services: Costs related to maintaining your valued relationships with affected customers
• Network security liability for lawsuits arising from the attack.

Data Compromise

The loss, theft, accidental release, or accidental publication of “personally identifying information” or “personally sensitive information” as it respects one or more “affected individuals.” Related to the theft of personal data information. (Think data breach.)

The following may be covered under this coverage:

• Forensic review to determine the nature and extent of the compromise
• Legal fees related to determining how to respond to the breach
• Services to affected individuals (information materials, helpline, credit report, or restoration case management)
• Notification to affected individuals: Costs related to notifying affected individuals
• Public relations services: Costs related to maintaining your valued relationships with affected customers
• Defense and liability coverage from a lawsuit from affected individuals including settlements