Almost everyone has been the victim of a cyber attack, whether they know it or not. Major corporations including banks, retail companies, medical corporations, and even government entities have all suffered from major data breaches in the last few years, leaving billions affected. Based on the current climate, these cyber attacks won’t be slowing down anytime soon and businesses of all sizes are at risk. The only thing we can be sure of is the need for protection against impending attacks with a cyber liability insurance policy.
But what is a cyber insurance policy? Many business owners still aren’t protected because they simply aren’t aware that they’re at risk and what cyber insurance covers. Does your client need protection?
Understanding Why Cyber Coverage Is Needed & What It Protects
Why Is It Needed?
Cyber security is now one of the top global threats we face. As we utilize technology more and more in our everyday life, the more at risk we are for a potential breach. Cyber attacks are predicted to increase, continue to rapidly evolve, and cause more severe damages as we move further into the digital age.
The Risks Involved
Some of the latest threats include:
This attack comes from a “type of malicious software, or malware, designed to deny access to a computer system or data until a ransom is paid.”
These attacks are the most common form of social engineering attacks and involve a hacker who tricks an internet user into providing private or personal information that can be utilized to access networks, accounts, databases, and more.
These attacks utilize technology to manipulate videos to produce false content that many viewers believe to be real.
- Cloud-Based Attacks
With more and more organizations using cloud-based storage for data, millions are at risk should these systems face an attack.
- Denial of Service Attacks (DoS)
These attacks involved a hacker that floods the network with traffic until the network can’t respond or crashes, leaving the legitimate used unable to access the network or devise.
The Potential Damages
Since we’re now extremely reliant on technology, we’re also more and more at risk of a hacker getting unauthorized access to our systems and intellectual property. On average, cyber threats can cost companies $200,000, which forces many to fold. Most business owners don’t understand the various costs associated with a cyber attack or data breach and leave themselves at risk of serious, and often, devastating financial consequences.
Scenario: A law firm is contacted by a hacker who demands $25,000 within 96 hours or all of their files/data will be deleted and their client’s private information will be released. They are completely locked out of their systems.
- Firm Does NOT Carry a Cyber Liability Policy
As the firm does NOT have a policy in effect, they are forced to pay the $25,000 ransom fee out of pocket. During the three days it took to recover access to their systems, they had to enlist another law firm to take over important upcoming cases and pay overtime to redo work product that was not accessible during the lockdown. They had to hire a forensic IT firm to investigate the cause of the breach and confirm what information had been compromised and pay this out of pocket. Once this was confirmed, they quietly notified those affected by the breach in an effort to avoid news of the breach spreading, failing to comply with PCI regulations. After facing a number of fines, they were forced to pay for credit monitoring for all involved and the financial consequences were too severe. They were forced to closed.
- Firm DOES Carry a Cyber Liability Policy
As this firm DOES carry a cyber liability policy, they immediately contacted their insurer who assigned a breach coach to walk them through recovery. The demand is paid and an IT forensics team locates the breach. The cost of hiring an outside law firm while they’re systems were down for three days is covered and a public relations firm assists them in properly notifying all involved parties so they avoid PCI fines. By acting quickly and being transparent, they were able to maintain their reputation and retain their clients. These costs were all covered by their cyber liability policy, less their policy deductible. Following the breach, they resumed business as normal.
What Does it Cover?
Any company or organization that utilizes technology is at risk of a cyber attack. This means, big or small, nearly everyone needs protection. With ProWriters, we offer cyber liability coverage for companies of all sizes, from billion-dollar corporations to small start-ups and everything in between.
A cyber liability policy offers a number of protections, should an organization find they’ve suffered a security breach, including:
- IT Forensics
The costs to determine what information may have breached.
- Notification Costs
The costs to notify individuals, businesses, regulators, and to run a possible call center related to the notification.
- Credit Protection Costs
The costs to provide credit monitoring services to the affected parties.
- Crisis Management Costs
The costs of media liability, including hiring a public relations firm. How the organization publicly responds to the breach is crucial in maintaining their reputation.
- Crime & Social Engineering
The costs of the involuntary parting of funds when a stolen password and username are used to direct funds out of your account.
- Costs related to a breach of Personally Identifiable Information (PII), including:
- Credit card numbers
- Social security numbers
- Bank account information
- Personal health information
- Sensitive corporate information
- Claims related to:
- Breach of contract
- Negligent protection of data
- Network security breaches
- Transmission of software viruses
- Denial of service attacks
- Defense of regulatory actions and possible fines/penalties
- PCI fines and penalties and assessments
- Multi-Media Coverage
- Online advertising
- Intellectual property
- Copyright and trademark infringement
- Libel or defamation claims
- Cyber Extortion: Ransomware coverage for potential ransomware demands during an extortion
- Cyber Business Interruption: Coverage for organizations that rely heavily on their network or the internet for their revenue (this is not covered by general liability policies). This may also include dependent business interruption, should a third-party they work with closely go down.
- Hack Damage or Digital Asset Damage: Coverage for the cost to rebuild your client’s:
- Electronically-held data
Get Protected With ProWriters
Do you have clients who utilize technology in their business affairs? Then you have clients who are at serious risk of financial loss. To learn more about how to best protect your clients, download our FREE eBook, How to Sell Cyber: Big Claims in Ransomware & Social Engineering.
To get started, contact us or call a ProWriters expert today at (484) 321-2335.