In today’s ever-changing world it is becoming easier to fall victim to a cyber-attack on your business. According to a study conducted by the Online Trust Alliance (OTA), there were an estimated 160,000 cyber attacks in 2017. This is nearly double the amount from the prior year and is expected to grow in the coming years. The average cost of each data breach in 2017 was $3.62 million which is 10 percent more than prior years. What can a business do to prepare and protect themselves from cyber-attacks?
Cyber liability insurance can provide comprehensive crime coverage for a wide range of cyber dangers that are increasingly threatening today’s businesses. These dangers include:
- Data Loss and System Damage
- Business Interruption
- PR And Crisis Management
- Notification Expenses
- Regulatory Investigation Expense
- Content Liability
While purchasing cyber liability insurance is important in today’s society for just about any business. It is also important to understand just exactly what having cyber liability insurance means and how best to protect yourself and your business. The following are some common expectations from cyber liability insurance consumers and the realities that are associated with those expectations.
Expectation: Purchasing cyber insurance is a fix-all solution to cyber risks and I don’t need to do anything else to protect my business.
Reality: Buying cyber insurance does protect you and your business from the losses of a cyber-attack but there are measures you should take proactively to protect your business. These include educating your staff on how to avoid cyber risks such as phishing scams, using technology to protect your private information such as firewalls and password protecting files, and implementing a strategy to follow in the event of a cyber-attack.
Expectation: The risks are well known, and it is easy to protect myself against them with proper precautions.
Reality: The risks associated with cyber attacks are ever changing and evolving. With new technology comes new risks and every day new ones are discovered. Unfortunately, because of this, it is not easy to protect your business. The best way to protect yourself is to put a strategy in place and invest in cyber liability insurance.
Expectation: I keep all of my companies’ private files stored with a third-party provider so if we are cyber attacked that would be their problem and I don’t have to worry about protection.
Reality: Storing files or backups with third-party providers can be a common practice but this doesn’t negate the risks your company is facing in the event of a cyber-attack. You also can’t rely on a third-party provider to be implementing safety and privacy features to protect your files. It is best to have a strategy in place to protect your files and protection for if an attack does occur to protect your company’s financial future.
Expectation: I already have a general liability insurance policy for my company, so I do not need to purchase a separate insurance policy for cyber liability.
Reality: General liability insurance covers bodily injuries and property damage resulting from your products, services, or operations. In most cases, cyber insurance is often excluded from a general liability insurance policy and needs to be purchased separately.
Expectation: Is cyber liability insurance really necessary? How bad could a cyber attack really be? I am sure I could just handle the fall out of a cyber attack out of pocket if that ever happens.
Reality: A cyber attack can do more than just damage your computer system and/or files. A cyber-attack can damage your reputation and put your customers and employees at risk. Cyber attacks can also result in major fines and legal fees. One cyber attack could cripple your company and potentially result in serious financial issues.
Just about any business that uses technology to do business faces cyber risk. As technology becomes more complex and sophisticated, so do the threats you face, which is why every business and organization needs to be prepared and protected. Call Gannon Associates Insurance at 844-GANNONS and ask to speak to an agent today to discuss your options and get protected against cyber-attacks.