CARLISLE – There are innumerable variations of different scams going around these days, not to mention the various ways companies, banks and school districts are being tested everyday. Protective measures like firewalls and anti-virus applications are not keeping pace with the hackers. 

Enter the insurance industry to help compensate businesses, and now school districts, for its losses.

For less than a $2,000 premium, school districts like Carlisle can receive a level of assurance that if they are hit, they are covered. 

Carlisle ISD’s technology director Brian Jennings indicated that schools need to beef up their overall portfolio.

As cyber crime rates continue to rise, it is important for every district to take measures that will serve to limit financial liabilities in the event of an incident,” he said. “Carlisle ISD employs multiple methods of protection as part of our overall strategy to secure the digital assets of the district.”

Jennings explained where criminals attack the school’s systems.

“Often referred to as ‘attack vectors,’ cyber criminals have multiple targets available when attempting a data breach on a district,” Jennings said. “These vectors can include the unauthorized access of the Public Education Information Management System (PEIMS) and Student Information Systems (SIS), website vulnerabilities, unsecured file servers and cloud storage, as well as email phishing scams.”

The insurance is based on a number of factors – the revenue range of the insurer, type of business activity and the coverage limits.

Schools the size of Carlisle with revenues of less than $10 million and a insurance limit of $500,000 can purchase a policy for $1,968.25 with a $2,500 deductible.

Most cyber events like incident response, legal and regulatory costs are covered at a full limit and for each claim. 

Theft by fraud incidents are covered for $250,000 limit for each incident such as funds transfers, theft of escrow funds, corporate identity theft, telephone hacking and unauthorized use of computer resources.

The policy also covers system damage and business interruption.

“Cyber liability insurance will help to mitigate financial burdens associated with a number of cyber crimes, including fund transfer fraud, identity theft, and unauthorized use of digital resources,” Jennings said. “The policy will also serve to provide relief from costs related to incident response and notification, digital forensics costs, data recovery, and interruption of business processes.  These costs are generally not covered by general liability policies.”

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