Cyber breaches to large companies like Equifax and HBO or ransomware attacks like WannaCry and Petya have been in the news a lot recently. Cyber threats are a growing industry, and hundreds of thousands of dollars are spent every year due to hacking. Small businesses are the most vulnerable to cyber-attacks, with 60% of them closing within 6 months of an attack. Most small businesses don’t believe they are at risk, or are unaware that cyber insurance is available at a reasonable cost.
There are several different ways your business can be susceptible to online attacks. Attacks that focus on your computer system and software, such as Ransomware and Malware are the most common. Hackers use human or technical weaknesses to access your computer system. With a ransomware attack, the hackers will encrypt your businesses data and demand a ransom to unlock it. A Malware attack destroys the information, limiting your access and ability to do business. Attacks can also include web-based attacks where hackers access websites, payment devices, cloud storage and social media accounts, posting private information or restricting clients from being able to access your site.
Your risk online is not limited to hackers. Every business has a human element that can put sensitive information at risk. Ex-employees can steal and distribute company data. Current employees can be tricked into breaking procedure or doing non-work tasks at the office that put their computer at risk. Or you could simply leave your work laptop in the booth next to you after an office lunch or have a flash drive drop out of your purse while you were searching for keys.
Most cyber insurance policies are two-fold and provide coverage for 1st party and 3rd party liability. The 1st party liability coverage includes notification coverage to those clients effected by the breach. This cost can be very high, and can include paying computer forensic experts who verify which clients have been affected. It can also include the cost and man hours it takes to call, mail and contact all the people effected. Extortion costs, media liability and public relation costs can also be included. Business Interruption coverage is also available to keep your business afloat while your doors are closed. 3rd party liability coverage helps with the cost of litigation that may arise from a data breach, theft or denial of access to your information.
Cyber insurance is affordable and available through most carriers. Many of our companies offer packages where you can pick what coverages you want. Call us today to discuss your cyber exposure and insurance needs!