30 May Cyber Liability Insurance Guide
Cyber Liability Insurance Guide
Cyber attacks are a large problem in our society. They can drastically affect businesses’ everyday operations, leaving both them and their customers at risk. Not only can financial operations be tampered with, but customers’ personal information and a company’s confidential data can be stolen or exposed.
Aside from Distributed Denial of Service (DDoS) attacks to slow down performance speeds or completely crash a site, other strategies can be utilized by hackers. For instance, malware can be used to infect the host system and gain access to its data. It can come in different forms, including keylogger malware that tracks the data users input into a system, and Trojan viruses that allow hackers to gain access to a system.
The fervor around the Facebook data-sharing scandal has the potential to be out-shadowed by the recent changes to federal regulations on gambling. We are going to see an increase in domestic gambling websites which may collect personal information, financial figures, and tax reporting data. The landscape of cyber crime is already tremendous, but we may have only seen a glimpse of its potential.
Impact on Small Businesses:
Although large companies may seem like more obvious targets for hackers, any business that handles sensitive data can be at risk for cyber attacks.
Insureon.com states that cyber criminals are actually interested in attacking small businesses, as they accept credit cards for payments, store customer information, often operate business online or in the cloud, and are less likely to have a strong defense against hackers. According to csoonline.com, a survey conducted by the Ponemon Institute found that more than 61% of small businesses within the U.S. in 2017 had experienced a data breach. Additionally, the site stated that 60% of small companies go out of business within 6 months of a data breach, largely due to their adverse financial effects.
Cyber Liability FAQs:
What security risks could my business be vulnerable to?
- Malicious employees that have knowledge of networks or access to them.
- Employees that are careless or unaware of safe technological practices (e.g., use weak passwords, visit websites that aren’t authorized, or open links and attachments from sources that could potentially be unsafe).
- The use of mobile phones and personal devices to perform business operations.
- Third parties gaining access to data through cloud servers.
- Devices with software or firmware that are unpatched or unpatchable, allowing for security vulnerabilities.
- The use of third-party service providers who maintain parts of a business’ system, but don’t use security-best practices to ensure that the system doesn’t get hacked through default password or malware from the Internet.
What kinds of costs could be incurred from a cyber attack?
- Notifications to customers informing them of a privacy breach
- Public relations to restore brand reputation
- Credit monitoring expenses for clients
- Paid investigations into how data was compromised
- Loss of income
- Recovery of network infrastructure
- Litigation expenses
- Regulatory fines/penalties
How steep could the costs of a cyber attack be without Cyber Liability Insurance coverage?
Studies have shown that the average cost for each record breached is around $190-$200, making large-scale security breaches extremely expensive. Ed Winslow, owner of NicheQuest and expert on cyber exposure, says he often sees clients who wrongly believe their antivirus software is enough to protect them. Subsequently, they end up paying thousands of dollars in the aftermath of a cyber crime incident.
Cyber liability is an exhaustive topic. The Daigle & Travers staff is well-versed in the potential exposures for individuals and businesses, and can advise you as to what insurance policies can protect you.
Get the coverage you need:
Daigle & Travers is based in beautiful Darien, located between Norwalk and Stamford. We serve Fairfield County, Westchester County, Long Island, and all of Rhode Island.
Daigle and Travers will provide you with the right coverage to make sure your investments are safe during a disaster. When partnering with us, we will give you all the necessary information and options you need to make the best choice of insurance company and policy. If you are in need of Cyber Liability Insurance, give us a call today at (203)-655-6974.