The speed of innovation in the technology world is difficult to imagine (think Virtual Reality gaming, Cloud Computing, even bendable phone screens) and the business world is fully immersed in the wave of innovation. The rapid rate of technological change brings some fantastic opportunities to our industry with new apps and software programs and widespread interconnectivity and data harvesting. But there has to be some risk for all of this reward and cyber exposure is something that you will increasingly need to factor into your business planning.

So what is cyber exposure or cyber risk? ‘Cyber risk’ typically means a risk of financial loss, disruption or damage to the reputation of a business from some sort of failure of its information technology systems. Medispas have long been gathering and storing personal, often sensitive client information and we’re now seeing an increasing number of salons and day spas amassing client data from their consent and release forms and the client procedure notes. Business owners rely on their information technology systems and programs to safeguard this information, what occurs if they fail? What happens if someone, somewhere, finds a way into your business files? You and your clients would be severely exposed.

The last few years have seen dozens of very high-profile data breaches amounting to the theft of hundreds of millions of customers’ information. One of the highest profiles of these cases was Target. Target had one of the largest data breaches in American history, with a cyber attack affecting more than 41 million customer payment card accounts. Hackers found a way into Target’s system, gaining access to a customer service database, uploaded malware into the system and stole full names, email addresses, phone numbers, entire payment card numbers and verification codes, and other highly sensitive data. In addition to 41 million payment accounts, the data breach also stole contact information from up to 70 million Target clients. Target had to pay a huge fine and its reputation was soiled, but this is a massive company with vast resources. Imagine the damage such a breach would have on your business.

So how can you protect your spa or salon? Cyber insurance is one of the top concerns for the insurance industry for 2018 (see and ABE has added it to our policy. Cyber coverage is a type of insurance intended to cover a variety of both liability and property losses that may result when a business engages in various types of electronic activities, like e-commerce and data collection within its own internal network. To protect you, your businesses, and your clients ask us about extended insurance coverage for cyber risks. Visit for our insurance page and call 800.444.7546 If you have questions.