How Can Cyber Risk Insurance Protect You?
Cyber security is one of the fastest-growing industries, and for good reason. As cyber threats continue to evolve, cyber security has to work twice as fast to stay ahead of these continually changing cyber security risks.
There are a number of serious threats to consider today, including:
- Social Engineering
- Third-Party Exposure
- Patch Management
- Cloud Vulnerabilities
- Internet of Things (IoT)
- Outdated Hardware
However, ransomware can be incredibly dangerous and costly, especially to healthcare facilities. Ransomware includes attacks that infect your network and hold your information and computer systems hostage until a ransom is paid. While the monetary loss from being locked out of your system can be expensive, it’s often the loss of data that can cause the real issues.
During the recent 2019 NetDiligence Summit in Philadelphia, ProWriters President, Brian Thornton, spoke during the Interactive Breach Scenarios Workshop and offered insight into how a ransomware attack can affect your organization.
Thornton outlined a specific scenario of a ransomware attack on a for-profit healthcare provider in Philadelphia. He discussed the specifics of the hypothetical attack: all employees have been locked out of the network and cannot access patient information. The hacking group is demanding $1M to unlock the network. While the IT team can restore access to the hospital’s system, it will take a week to do so. Thornton then led an interactive discussion on the most delicate of questions; What would you do?
As the attendants of the discussion debated, it became clear that the answer was complex. There were a number of options, each with different possible positive and negative outcomes. In trying to determine how to measure cyber risk, it was evident that the right cyber insurance carrier is the best choice in guiding you through the most prudent decisions for your patients, clients, customers, and organization.
How Can a Cyber Risk Management Plan Protect Your Business?
- Data Response Plan & Coach
Understanding what steps to take when you’re hit with a cyber attack is vital. Every hour that goes by without taking action is doing further harm to your organization and to those whose information may have been compromised. Having a cyber security expert on your team to walk you through the steps to take in response to the attack is imperative. Without a data breach response plan, the damage will only get worse with every hour.
- First-Party Coverage
There are a number of costs associated with a breach. Without taking the proper action, your organization could find itself at even further risk of a breach or potential regulatory fines and fees. Costs to consider include:
- IT Forensic Costs
- Notification Costs
- Credit Protection Costs
- Crisis Management Costs
- Crime & Social Engineering
- Third-Party Coverage
When Personally Identifiable Information (PII) is breached, your organization can run into costs related to loss of credit card numbers, social security numbers, bank account information, private health information and sensitive corporate information. You could also face claims for breach of contract, negligent protection of data, network security breaches, and a number of fines, penalties and assessments. Without cyber liability insurance, you would face these costs out of pocket.
- Public Relations
When a cyber attack strikes, it’s important to understand the negative effect it can have on the reputation of your company. Here are a few things to consider:
- How do you plan to notify your customers of the breach?
- How will you respond to a media inquiry if news of the breach is leaked?
- What will employees tell customers and clients, should they receive phone calls?
Many customers will begin to take their business elsewhere in an effort to protect themselves and their information. It’s important that an experienced crisis management team assists with this process. Transparency is key here and a crisis management team will help respond to the attack in the best way possible. This will help to mitigate further damages.
A cyber liability insurance company will play an enormous role in your response to a cyber attack. It’s important to tailor your cyber policy to meet your organization’s specific needs and maximize coverage, should you face an attack.
With ProWriters, we offer more than 25 years of experience in cyber liability insurance. Contact us today or call (484) 321-2335 to speak with an expert and learn more.