Should government self-insure? This has been a long-running topic not only in the insurance industry but also in the halls of government.
This being a long weekend, if you may have a few minutes to think about more than tomorrow’s next crisis, it’s a fine ponder.
Detectives? Sure. Let’s take the Florida case that popped a few days back.,
The Daily Commercial headlined it as "Sarasota, Florida Sheriff’s Office investigating statewide data breach."
The guts of the story distilled down to a government social services leak. The Florida Department of Children and Family Services was named in the report.
So was the damage figure: $260,000 and possibly more still out there.
We won’t go into whether the (alleged) agency breach is covered by the State of Florida (self-insured), or whether it’s a matter where data insurance from a private insurance carrier was in force. For now, we’re just "Watching the Detectives" and collecting details.
Unlike the Federal Government, however, your firm is probably unable to print money on-demand, which certainly explains why the USG self-insures.
The problem continues to evolve everywhere, including government, courts, law firms and more:Thomson-Reuters reported recently that:
“…the number of U.S. data breaches tracked in 2017 hit a new all-time high of 1,579, up 44.7 percent over 2016’s record 1,091 breaches. These numbers came from the five categories assessed: banking, business, educational, government/military, and healthcare. Business led the numbers with 584 breaches. Hacking was the primary attack method, followed by phishing emails, malware, and employee errors or negligence. “
While government will continue to “write itself a pass” (and print money or raises taxes to cover – or both), there doesn’t have to be any questions like “Am I as risk?” And its corollary “Can’t I get a Pass?”
Sorry to say but yes, if you’re in any way connected to the web, you are at risk. And no, government only grants passes mainly to itself.
Something to put on your calendar after the Fourth: Schedule a free Cyber-Armada Cyber Assessment. If the Detectives show up, it’s already too late.