You’ve insured your business down to the trim on the doors and the nails in the shelves. You have the best security system money can buy. You’re covered for natural disasters, robberies, and even the elusive “acts of god.” You’re convinced there’s no way anything could possibly go wrong. And then a hacker invades your web space and changes everything. Although you may not realize it, your company’s web platforms are an incredibly vulnerable part of your business. Cyber liability insurance ensures that you’re covered even if your break-in occurs only in the intangible world of the web.
Cover the Cost of the Unexpected
Cyber liability insurance is a specialized insurance type designed to help you cover the cost of correcting a digital breach. While you may think the costs will be minimal – some additional code in your firewall, perhaps – the hidden costs of an online breach are far greater. There are charges associated with notifying customers and employees of the breach to allow them to cancel credit cards or close bank accounts if they desire. Often if the breach is your responsibility, you’ll be required to cover the cost of credit monitoring for all customers involved. Both of these costs should be covered by your cyber insurance. Loss of revenue due to interrupted business should also be included.
Don’t let your most vulnerable backdoor end in loss. Cyber liability insurance keeps your business protected in the event of a digital disaster.
In today’s cyber-enhanced marketplace, everything is stored digitally. Even traditional storefronts keep important records stored to hard drives and cloud servers. Documents like customer records, accounting information, budget paperwork, and order confirmations are all stored in digital formats now. This turns once-merely-inconvenient issues like hard drive crashes and fried motherboards into potentially disastrous worst-case scenarios. In the event of a major data loss like this, it’s important to have cyber insurance coverage to ensure that your business continues to succeed despite your losses.
When the Worst Happens
Everyone has experienced the painful loss of a computer that just stops working. Whether the motherboard melted, the hard drive crashed, or you’ve been hit by the iconic “blue screen of death,” no computer collapse is easy. This loss is especially compounded if your computer contained sensitive business-related data that could create costly issues for your business. Even cloud-stored information isn’t safe, as it can be susceptible to breaches, or merely disappear without a trace. Cyber insurance keeps your business protected in the event of a loss. Good cyber coverage should help you handle issues like loss of revenue due to interrupted business, notifying customers or employees of breaches or losses, and even legal services if the loss was due to criminal activity like a virus.
No one wants to think about the worst-case scenario, but it’s important to be prepared, nonetheless. With cyber insurance, your business can get back on its feet quickly and seamlessly, even after a major data loss.
As any business grows, its needs can dramatically change. In this day and age, many businesses have an urgent need to keep up with the world’s growing reliance on technology. However, the more your business builds its presence on the internet, the greater the risk of potential cyber attacks. Cyber security insurance can help protect against these, so here are some of the best reasons you should consider it.
1. Attacks Are Getting More Advanced
Phishing emails (emails that attempt to scam recipients into providing personal or financial information) continue to appear more legitimate, which makes them difficult to detect. In addition, attackers are always improving their tools, so today’s anti-virus software may not protect against tomorrow’s hacker.
2. Cyber Crime Is Expanding
Cyber crime is no longer limited to lone hackers sitting in their own basements; major operations have developed and are often able to pour large amounts of money and time into implementing large-scale cyber attacks. These attacks target both large and small businesses as the information stolen can often be valuable regardless of the source.
3. Cyber Attacks Are Expensive
Cyber security insurance is more important now than ever because of the extensive costs involved when a business falls victim to a cyber attack. Clients must be notified and assisted with credit monitoring, business processes are interrupted, and your company’s overall reputation may be damaged.
Cyber crime is a significant threat to any modern business. However, the right insurance can ensure a company is prepared for and protected against these types of attacks.
Major companies are not the only targets of cyber-attacks, an indication that hackers have shifted their efforts towards small, and mid-sized businesses here in Florida. This is due to easier accessibility with the same potential for high profits. This threat has been matched with a rise in the purchase of Orlando cyber liability coverage.
Cyber breaches, often in the form of a third party attack on a company, are common, and continue to grow in frequency as well as severity. If a hacker is able to gain access to a company’s network (where sensitive client information is stored) they’ll then be able to make fraudulent fund transfers, or secure this information to sell for identity theft purposes.
Cyber attacks aimed at all sized businesses
First party breaches also take place, and not always intentionally. For example, a highly trusted employee may take his or her laptop away from the office only to have it stolen. The problem is that the laptop contains private client information. In such a scenario your standard commercial general liability policies will not cover this loss.
Network breaches can cause costly business interruption
In the case of a cyber claim, given that the company affected will still be liable for any damages done, having Orlando cyber liability coverage will pay those damages. With more companies relying on electronic storage of client’s private data, there needs to be an understanding of the types of expenses and liabilities your company would face due to a breach of your computer network. A comprehensive cyber liability policy would be able to cover and protect you from an array of third- and first-party breach liability exposures.
You could also benefit by hiring cyber security professionals to conduct forensic analysis, which should determine the cause of the breach, and begin the reparation process of the affected network. While in this process, your business would experience a costly interruption of services. Orlando cyber liability coverage would reimburse all notification and forensic costs as well as restoration and business interruption costs.
Our technological advances provide great opportunities for businesses, but are being abused by thieves and criminals seeking opportunities, opening up companies such as yours to a new set of liability exposures.
Despite many recent reports involving cyber breaches to large corporations, the medical industry has its share of exposures and concerns. Cyber risk continues to be a serious issue, and cyber liability is now one of the top threats to the medical industry. Medical records and personal information stored on servers serves as a target to many hackers and thieves who see value in obtaining these files.
While having your clients add to their current IT security is a great way to try to combat this issue, it still isn’t enough to address all of the risks being taken. A comprehensive set of network-security policies and procedures need to be properly implemented and tested, as well as updated on a regular basis, in order to ensure that the proper risk assessment has been made and steps to properly manage the problem are in place.
Reputational damage is another concern
The loss of reputation and brand value to these institutions is another major issue, and the losses suffered due to a breach can be hard to overcome. In many studies this is high among respondents’ concerns. Obviously, if a company experiences a loss of personal data belonging to clients it creates a lack of trust in that company. Having this type of risk is likely to have a cumulative effect with any subsequent attacks occurring.
Hospitals and healthcare professionals have since come to terms with the fact that they now face a serious danger from cyber risk and privacy breaches. Confidential information and personal data is a very valuable company asset, one that these organizations must strive to great lengths to protect. Traditional insurance plans will not cover the costs incurred from misplacing or losing sensitive data.
Lost or stolen data can cost a company millions of dollars if not properly protected. Companies with personally identifiable information and protected health information should purchase standalone products that will help to transfer this risk and protect their balance sheet. Doing business online is a risky proposition, and with individual information becoming more public, along with sensitive business information, this type of exposure can cripple a profitable organization. As a broker you should educate your clients in the best ways to protect their customers and their business through properly insuring against cyber crime.