Risk managers and business owners face increasingly serious information technology challenges. Regardless of business size, most companies report that they suffer at least one significant data breach annually. They also share that they have been victimized by computer related vandalism (including denial of service attacks where operations are jammed). Further, these problems tend to trigger significant financial losses.
Most security breaches have involved attempts by criminals to acquire sensitive company information, usually concerning their customers or clients. Businesses and entities that are popular targets include:
Financial Institutions
Hospitals (Doctors Office, Dentist, Chiropractors, Physical Therapist, etc.)
Retailers (Those who may store credit card information, Clothing Stores, Electronic Stores, Hair Salons, Barbers, etc.)
Transportation Services
Information Services (Computer Repair, Computer Programmers, IT Consultants)
Food Services (Restaurants, Fast Food, Food trucks)
Manufacturers
Professional Services (Financial Advisors, Attorneys/Lawyers, Banks, Accountants, Bookkeepers, etc.)
Universities
Even when the attempts are unsuccessful, the financial and human resource costs associated with handling these, and other cyber liability risks are staggering.
If you find yourself in the above industries, call today at 419-205-9046, or schedule an appointment here to review your cyber coverages.
The Insurance Solution
In recent years, a market has developed to offer specific Cyber Liability Insurance coverage. This was necessary because traditional property and liability coverage forms do not meaningfully address cyber risks. Two types of coverage are usually available. One type is to protect the insured against damage caused to its customers when its data security is compromised. A second type is for tech companies who face lawsuits from clients who claim damages by the products they purchased from such companies, such as flawed security software.
Typically, a cyber-liability policy covers harm due to unauthorized access, introduction of a virus and generally any activities involving business use of the Internet. General factors to be evaluated by a business and its insurance professional to determine their cyber liability insurance needs are their scope of Internet activities, the extent of coverage (such as named peril or “All Risk”), whether the coverage should include professional liability and the amount of the coverage deductibles or coinsurance. A business should also determine if it should arrange excess (catastrophic) levels of coverage. If business operations extend beyond the U.S., coverage should consider the need for global protection.
Cyber liability risk is complex and is also dynamic. Businesses must include the need to address such risks in their regular planning.
The above information is courtesy of Insurance Publishing Plus, Inc.
Some Surprising Statistics to Keep in Mind Regarding Cyber Risk and your Business
These statistics can be verified with the National Cyber Security Alliance, Cyber Security Ventures, and IBM’s annual data breach report.
60% of Small Business will go out of business within 6 months after a cyber attack
50% of small businesses haver experienced a cyber attack
More than 70% of Attacks target small businesses
Small Businesses will spend an average of $955,429 to restore normal business in the wake of a successful attack.
Cyber attacks are projected to cause over $6 Trillion Dollars in damages during 2021
2021 has had the highest average cost in 17 years, with remote work as the primary cause
If you are looking to reduce your risk, it’s important to work with cyber security experts, integrate cloud security and back-ups, work with implementing and educating your employees and yourself with a Zero Trust Security Approach.
Call today at 419-205-9046 or schedule an appointment here to review your cyber coverages.