You’re probably aware of the importance of business interruption coverage in protecting your organization from the unforeseeable. What if a natural disaster strikes and your yoga studio floods? It could take months to replace your expensive flooring, stereo system, drywall, and mirrors. Or there’s a fire at your healthcare organization? You’re forced to cancel appointments because your MRI machine was destroyed and your patients can’t wait for you to replace it. But what about damages that aren’t physical? As cyber attacks continue to grow and evolve, your organization is more likely to suffer from a cyber attack than any other disaster. Be prepared with a cyber policy that includes dependent business interruption coverage.
So what does a cyber policy that includes coverage for dependent business interruption actually protect your organization from?
Three Ways a Business Interruption Loss Can Harm Your Organization
- Business Income
If your organization is the victim of a cyber attack, the restoration process may not be immediate. In some cases, it can take much longer than anticipated to locate the exact location and cause of the breach and to stop it. This is generally done by IT Forensic Specialists, however, until the process begins, you can never be sure of what kind of timeframe to expect. In today’s technology-heavy environment, nearly all businesses would be unable to function without the use of their computer systems. Every day that your business cannot run and collect income is a financial hit on your organization. A policy that contains coverage for contingent business interruption provides coverage to allow you to collect income as if the cyber attack never occurred.
- Business Expenses
Even though you will be unable to conduct business during the restoration process of the cyber attack, there are a number of expenses that will still need to be paid. This can include:
- Insurance Policies
- Employee Benefits
The list can go on. If your organization suffers from a business interruption loss, you have no business income. Without business income, how will pay these expenses? If you don’t have a cyber policy that includes dependent business interruption coverage, you may be forced into taking out unnecessary loans to cover these expenses and force your organization into dangerous or irreversible debt.
- Employee Wages
Employees are the backbone of an organization, but ultimately, employees are working for you because they need something: money. If your employees are unable to support themselves while business has been halted, they will do what they must to support themselves, and look elsewhere for employment. It’s important that your team is waiting and ready to go when your system is back up and running. A contingent business interruption policy will ensure that your employees are collecting their wages during the restoration process.
Would you protect your organization from the threat of a hurricane? Or the potential of a break-in and theft of expensive equipment? Protect yourself from the biggest risk of all: a cyber attack.
What makes cyber attacks even more dangerous today is their constant evolution. A cyber attack can now include:
- Patch Management
Outdated software leaves the system vulnerable, allowing hackers to exploit the vulnerability and launch a cyber attack.
- Internet of Things (IoT)
The internet connection that joins a number of devices is exploited and used as an access point to steal data.
Hackers infect your network and hold your data and computer system hostage until a ransom is paid. These are considered the most dangerous and costly.
Don’t leave your organization vulnerable to cyber attacks and their costly, and possibly devastating, consequences. Protecting yourself with the proper cyber policy that includes coverage for dependent business interruption to ensure your company is prepared.
Contact ProWriters to speak with an expert about how to best protect your organization today. Or call us at (484) 321-2335.