For a moment, when we saw the article in Forbes this week, we thought it was time to clean the glasses or see the eye doc. But, here it is: A ‘smart home’ platform in China has been hacked exposing more than 2 billion records.
How bad is it? Well, depends on what your coverage is like for ‘smart home’ and IoT (Internet of Things) coverage. Not many customers will have this kind of exposure because IoT coverage is a bit of a rare beast. But, it’s on our list.
Here’s the liability angle: Let’s say you’re a typical ‘smart home’ user. Maybe you have a voice-controlled access module and you have set up voice response around the house. This might typically include half a dozen lights (WiFi controlled at the outlet) and another half dozen as in-wall WiFi switches. Say 12 devices in all.
Now, divide this into 2-billion records and the number of potential claims might drop to the 167-million range. Still more difficult (from an insurance perspective) is “Where’s the loss?”
We admit turning the lights on in garage as 2AM would be difficult to present as a “loss.” On the other hand, if you are traveling and have set up your lights in a pattern for the next week, who’s to say what might be sold as “criminally useful” on the dark web. Burglars have keyboards, too.
We don’t get many IoT coverage questions (yet), but as that part of the Internet grows, so will hacking opportunities. And with hacks comes losses. Losses beget lawyers and claims.
Better to be ahead of the curve on such matters, so be sure and set up one of our free cyber security assessments. You’ll be glad you did. Don’t be ‘left in the dark’ about IoT risk!