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What happens if my business network gets hacked and my data gets breached?

Written by Jacqueline F. Redmond and Tracy Beckham Phipps

We hear about data breaches all the time on the news and assume it is large businesses like Target or Anthem Healthcare. Small businesses don't think a hacker would bother with them since they are small. However, hackers have breached half of the 28 million small businesses in the US. [2016 State of the SMB Cybersecurity Report] This is something that no business owner wants to go through - network security breached, sensitive customer data taken and business secrets potentially exposed. Will there be lawsuits? Am I in compliance will all government/state regulations? Does my insurance cover this? Is the network vendor responsible?

State and federal laws seem to lag behind the emerging technology. New York has been on the cutting edge and just passed cybersecurity regulations. [23 NYCRR 500] More states will probably follow New York's lead. These regulations right now apply to insurers and financial businesses but could be expanded in the future to cover more businesses. Some of the requirements are as follows:

1.) Appoint a Chief Information Security Officer by August 2017

2.) Require periodic risk assessments and maintenance of cybersecurity programs

3.) Have written cybersecurity policies in place

4.) Limit user access privileges

5.) Destroy non-public information periodically and securely

6.) Notify New York's Department of Financial Services of any breach within 72 hours

7.) Provide training on cybersecurity issues

You may not know who to turn to but Herzog Crebs provides a cost effective emergency response to a cybersecurity breach. We have experienced attorneys that can provide answers and solutions to your cybersecurity issues. In addition to defending any lawsuits that may arise from this breach, we can counsel you on whether there is policy coverage for this, if vendors or third parties are responsible for the costs associated with the breach, if you are in compliance with all federal and state regulations and finally what steps need to be taken in the future so this does not happen again. Costs can mount up when you are dealing with a breach but with Herzog Crebs, we can keep costs low and still provide you with comprehensive solutions to your cybersecurity needs.

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