The Internet Cloud Can Rain Down on Your Auc on

The Internet Cloud Can Rain Down On Your Auction

Submitted by Greg Magnus, E.R Munro & Company

As more auctioneers move to online auctions and partner with various auction software platforms, they should consider how these operations will affect not only their own privacy and data, but the privacy and personal identifiable information of their customers. Some auctioneers feel they are safe from cyber crimes because they hire the auction software company or platforms and that these companies would protect the auctioneer. They believe that if the bidder’s personal information such as credit cards or bank account numbers are stored in “The Cloud”, that the auctioneer is not responsible. Simply put, the cloud is the Internet—more specifically, it's all of the things you can access remotely over the Internet. When something is in the cloud, it means it's stored on internet servers instead of your computer's hard drive. The auctioneer owns the data they create, but the cloud service provider has ultimate control over it. Once a hacker gains access to an account, they can use the cloud infrastructure to access other accounts. If they manage to access an account belonging to the cloud provider, then the attack would be much more extensive. Even if an auctioneer does not hold the credit card information on their hard drive, they usually have their customers, name, address, phone, and email address. This personal information may become compromised. A Cyber Insurance policy will help protect the auctioneer. Cyber liability insurance is needed to mitigate these threats irrespective of the size of your company. It covers your business’ liability for a data breach involving sensitive customer information. Having cyber liability insurance will cover a significant portion of the financial losses you suffer after a cyberattack.

Examples of what a cyber insurance policy will provide coverage include: Ransomware: A hacker has encrypted all of your files and won’t unlock them until you pay a ransom. Not to worry, the policy covers the costs to restore your data and get you up and running again. Wire Fraud and Social Engineering: A funds transfer request is sent to your controller by someone pretending to be your CEO. The funds may be out the door, but at least you’re not out of pocket with a cyber policy. Phishing and Data Breaches: A hacker gains access to an employee’s email or breaches your network. A policy will cover costs to fix the problem and breach related expenses such as credit monitoring and regulatory penalties.

Don’t let the Cloud rain down on your auction company and if it does, you may want to consider not only a cyber insurance policy, but an umbrella…but that is an entirely different article.

E. R. Munro and Company has been protecting small businesses since 1885. Our family-owned company has provided bonds and insurance for auctioneers for more than two decades. From commercial liability policies for one-person operations to complete insurance programs for companies, including property and automobiles, call E. R. Munro and Company at 1-877-376-8676. Contact Greg Magnus at Ext. 157 or email him at gmagnus@ermunro.com for details on insurance.