Cyber Insurance

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Hackers don't discriminate

A staggering number of small and medium-sized organizations suffer cyber attacks each year, and find themselves trying to manage without the support of cyber insurance coverage. And if your systems or data are compromised, it can put you out of business. At the very least, you could suffer a significant financial loss and take a severe hit to your reputation.

When a cyber attack occurs, recovering your data is just one piece of the pie. Having cyber insurance coverage is another.

Cyber insurance covers the first party and post-breach costs associated with the liability of a cyber breach. This includes business losses, a forensic investigation, regulatory fines, ransom payments and notification of individuals whose social security numbers, credit card numbers and health records may have been compromised.

Cyber insurance will help restore employee and customer identities, recover compromised data and repair damaged computers and networks, whether your business is the victim of a data breach, password attack, ransomware or phishing attack.

Find out what's covered in a cyber insurance policy.

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Who needs cyber insurance?

Every business that stores data on a network is at risk for a cyber-attack. If you don’t have cyber insurance, think twice. Data privacy attacks now happen every 40 seconds in the U.S.

Without cyber insurance, you could be on the hook for state and federal fines and penalties, a forensic investigation, breach notification costs and even a class action or third-party lawsuit down the road – all directly off your balance sheet.

Cyber insurance covers the following first party and post-breach expenses:

Privacy attorney
IT forensic investigation
Compliance with state notification laws
Credit monitoring for breached individuals
PR firm to manage the crisis
Regulatory fines
Class action lawsuits resulting from the breach

There is no industry-standard when it comes to cyber insurance, so having an experienced broker will be key to making sure you’re adequately insured.

CALCULATE THE COST OF A CYBER DATA BREACH

60% of businesses don’t recover after a cyber attack because they weren’t prepared. Understanding the financial impact to your organization is critical to your recovery and having comprehensive cyber insurance coverage.

Get a personalized data breach cost report for your organization.

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Don't Fall Victim to These 5 Cyber Myths

You wouldn't leave your office building unlocked overnight, so why take your organization's cyber security any less seriously? It's what stands between hackers and your sensitive data. Even so, some myths about the risks of falling prey to cyber thieves remain.

Myth #1: "A small business like mine doesn't need cyber insurance."

Fact: 85% of data breach insurance claims come from small to mid-sized businesses, and over 60% of those businesses never recover from a data breach. Regularly backing up your data is one way to minimize the damage that can occur if your business is compromised. If a computer is stolen or your network is infected with a virus, for example, the backups can enable your business to get back on its feet sooner.

Myth #2: "Hackers aren't interested in my business data."

Fact: Any data that can be monetized, such as credit card numbers, health records and contact information, is an attractive target. And if it's easy to get, the more appealing it is to hackers: even email addresses can be used to lure employees or customers into disclosing personal information. Instructing your employees to not leave laptops unattended in coffee shops or airport lounges or use unencrypted smartphones to conduct business - and to secure their devices when not in use - can prevent cyber thieves from accessing your data.

Myth #3: "Data breaches are already covered under my general liability insurance."

Fact: Not true! And general liability insurers are saying so by amending their policies to state explicitly that losses due to cyber breaches are not covered. But even with cyber insurance, there are steps you can take to reduce the risk of a data breach in your organization. For example, employees should know and understand the dangers of using unencrypted connections via public Wi-Fi hotspots.

Myth #4: "IT vendors have cyber security figured out."

Fact: Two-thirds of data breaches are tied to third-party IT vendors. Cyber security and risk management should work in tandem. For greater peace of mind, be sure that you regularly receive audits and reviews from you data security providers. Those reports should include what they are doing to address their cyber security and governance in the event of a breach.

Myth #5: "Cyber insurance is too expensive."

Fact: A cyber insurance policy can cost as little as $1,000 annually, whereas crisis response costs following a breach can easily climb well into six-figure amounts. There are also legal costs and settlements to consider. Few events can be more damaging to your business than a full-scale data breach. Having cyber insurance could prove to be priceless when it comes to protecting you and your business.

Key ways to Minimize Business Disruption

If a cyber attack occurs, there are steps you can take to reduce the impact on your business.

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Protect the Evidence
Protect the Evidence

Like any crime scene, you need to secure the area where the breach occurred. Then, identify the point of entry, duration of the exposure and the type of data that has been compromised.

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Prepare an Incident Report
Prepare an Incident Report

You need to capture all available information about the attack as quickly as possible. This report, which might be needed for investigative and insurance purposes and obligations to third parties, should describe what happened and when, and actions that were taken.

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Identify the Affected Business Processes
Identify the Affected Business Processes

Failure to quickly identify the scope of an incident can lead to higher response costs. You also need to determine whether data is still accessible and how it might be used for malicious purposes.

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Establish an Incident Response Team
Establish an Incident Response Team

Make sure your organization has a cyber "A-Team" on call. It should be prepared to handle the immediate response to a breach, along with coordinating communications, assisting external investigations and reviewing insurance coverages.
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