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Cyber Security Impact on Real Estate Sector
Posted on: November 21, 2016 by Newmark Insurance
By now, the majority of businesses have recognized the looming threat of cyber breaches. The reality and repercussions of these attacks have become well-known and highly publicized over the last few years- especially for big name brands like Target and Neiman Marcus. With our businesses so reliant on technology with no sign of slowing down in the future, now is a great time to review and evaluate your current Real Estate Cyber Liability policy and heed the following advice as to how this threat impacts your industry.
Regardless of the size of your real estate firm, you are not immune to cyber-attacks. Even if you have a small firm, a lack of defenses- including internal controls, safety protocols, and the right insurance- is the biggest red flag for your business.
Real estate firms are heavily affected by this trend– for example, property managers, brokers/agents, title agents, developers, appraisers, multi-service real estate firms, and others may have significant amounts of confidential third-party information, either in the form of personally identifiable information (PII) or confidential corporate information; Depending on the REIT structure (public or private), and type of investor (individual, corporation, etc.) information is held electronically or in hard copy by these trusts, and can include tax records, federal identification numbers, social security numbers and other confidential information.
If a laptop with personally identifiable information was stolen, or it had company records and real estate files in it, your firm could be fined thousands for causing a breach. Or, if your computers were hacked or a disgruntled employee provided confidential information to a third party, your firm would also be at risk for facing cyber liability claims. With so much room for human error and the potential for risk, a cyber liability insurance policy is a must.
About NewMark Insurance Services
At NewMark Insurance Services, we understand the unique risks you face as a business owner. We also know the detrimental impact that a cyber-breach can have for your business and your reputation. In addition to Real Estate E&O, we offer comprehensive Cyber Liability Insurance among other coverages. Please contact us today for more information at (855) 777-6549.