Cyber Insurance: Keeping Pace with Technology and the Protection You Need
The past decade has witnessed exponential progress in technology. The positive implications of this have been far reaching. We are reaping the benefits in both business and our personal lives: convenience and efficiencies now define our communications, banking, and global connections.
The negative realities of this accelerating shift in technology have made our businesses and personal lives digitally hospitable to the criminal underworld, creating relatively simple, efficient and, above all, lucrative conditions to exploit vulnerabilities. Cyber criminals diligently pursue opportunities in funds transfer fraud, phishing scams, extortion and ransomware attacks, malware attacks, etc. from the ease and comfort of their home base operations at any time, day or night.
Who’s vulnerable? Anyone can fall victim to the attack.
Currently, cyber crime is the fastest growing enterprise risk in the world. While anyone can fall victim, small to mid-sized companies are the most vulnerable and experience most of the breaches. Hosting data with third-party cloud providers does not transfer or negate risk.
What is Your Responsibility?
80% of breaches are unreported; nonetheless, breach notification laws make it mandatory to report data breaches: failure to do so can lead to significant fines and penalties. Additionally, banks will not reimburse for a funds transfer loss resulting from your negligence.
Considerations: What does your current insurance policy cover? More importantly, what does it not cover?
When your brand and reputation are at risk of being compromised, and your data, one of your most important assets, is at risk, it is essential that you carefully assess your current policy: how breaches and data are defined; the adequacy of first party coverages and limits; implications of third party hosting and rogue employees; terrorism exclusion; retroactive dates; encryption warranties; and social engineering (phishing)/call back provision.
Cyber Insurance: Confidence in Your Protection
Adequate first party limits are essential when less than 5% of cyber claims involve third party litigation. A properly designed cyber policy provides a wide range of breach response services minimizing the impact of a breach covering: legal fees/damages from litigation by impacted customers; fines/penalties from regulatory bodies; costs in hiring a breach coach, IT forensic experts; notification, credit monitoring, and data restoration costs; public relations, business interruption loss and reputational costs; funds transfer losses and ransom payments.
Cyber Liability products provide comprehensive coverage, including legal expenses and damages stemming from third party claims, as well as first party expenses such as notifications costs, forensic analysis, credit monitoring, loss of revenues and crisis management expenses.
Contact us to discuss how Cyber Liability Insurance might be beneficial for your organization.