With every 2 in 3 businesses saying they have been the target of a ransomware attack it is more important than ever to have insurance protection against these growing cyber threats.
Cyber liability insurance – also known as cyber security insurance or cyber risk insurance -- protects a business from the cost of threats to computer systems and data.
“Cyber liability exposures represent an emerging threat to business today,” Bryan Smith, vice president of product management at The Hartford, told Forbes in September 2021. “Threat actors continue to develop increasingly sophisticated ways to access business systems and networks leading to the potential loss or destruction of confidential business and customer information.”
Daily headlines show that these cyber-attacks, especially ransomware attacks, are on the rise around the world.
“It’s no secret that ransomware has reached near-epic proportions. We are hearing about ransomware attacks left and right – and those are just the ones we hear about,” wrote Derek Manky in SecurityWeek on Dec. 15, 2021. “For every attack that makes the headlines, there are many more that don’t. In fact, a recent survey by Fortinet found that more than two-thirds of organizations say they’ve been the target of at least one ransomware attack.”
Forbes says cyber attacks on your business can come in different ways, including:
While high-profile ransomware attacks, such as the Colonial Pipeline attack or JBS Foods breaches in 2021, grab most of the publicity, cyber-attacks are occurring each day to businesses of all shapes and sizes.
Scanning SecurityWeek cyber threat reports from just the past 10 days finds the following:
Cyber liability insurance covers the damage that your business suffers because of a cyber security breach including the following costs:
Forbes also says that “cyber liability insurance also covers damage impacting your customers or business partners because of the cyber-attack. These damages include things like legal fees, customer notifications and settlement costs.”
What else can cyber liability insurance cover? Forbes says some policies will cover:
The Insurance Information Institute says that insurance experts now consider the risk of cyber liability losses to exceed the risk of fraud or theft.
“The risks of cyber liability are evolving rapidly, with new risks emerging as technology advances and new regulations are put in place,” writes the Insurance Information Institute. “In this tumultuous environment, your business can take several steps to limit risks, including purchasing cyber liability insurance.”
The Insurance Information Institute says if your business is hacked, your company may be exposed to the following risks:
Keep in mind that some boilerplate business insurance policies may provide coverage for certain types of cyber incidents.
For example, if you lose electronic data as a result of a computer virus or hardware failure, your insurance may pay recovery or replacement costs.
To extend coverage for a fuller range of cyber liability risks, however, your business will need to purchase a stand-alone cyber liability policy which can cover:
Contact the trusted Dean & Draper insurance advisors today to find out which cyber liability insurance can provide your business with the best terms and coverage.
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