Cyber Risk Questions Every Business Owner Should Think About and Why Cyber Liability Insurance is so Important
When a data breach occurs, the damages can be significant, often resulting in lawsuits, fines, and serious financial losses. Cyber exposures impact businesses of all kinds, regardless of their size, area of focus, industry, or status as a private or public entity.
In 2019, Yahoo reported that 205,280 organizations submitted reports of ransomware attacks. This is a 41% over 2018, with the average claim ranging between $84,000-$190,000 per attack.
Based on the above statistics, below are some questions company management teams should consider.
- Does your company use technology to prevent data breach attacks?
Every company needs to have robust cybersecurity tools and anti-virus systems in place. These systems act as the first line of defense for detecting and preventing potentially debilitating breaches. These preventive measures must be reviewed regularly, as cyber threats can evolve quickly.
- Does your company have a comprehensive cybersecurity program?
Companies need to create comprehensive data privacy and cybersecurity programs for Cyber Risk Questions. These programs help organizations build a framework for detecting threats, remain informed on emerging risks, and establish a cyber response plan.
- Has your company’s management team identified a member to be responsible for organizational cybersecurity preparedness?
Organizations that fail to create cyber-specific leadership roles could end up paying more for a data breach than organizations that do. In the event of a cyber incident, fast response and clear guidance are needed to contain the breach and limit damages.
- Does the organization have a breach response plan in place?
Even the most secure organizations can be impacted by a data breach. Additionally, it can often take days or even months for a company to notice its data has been compromised. Having a breach response plan allows organizations to notify impacted customers and partners quickly and efficiently, limiting financial and reputational damage.
- Has your management team provided adequate employee training to ensure sensitive data is handled correctly?
While employees can be a company’s greatest asset, they also present one of their biggest cyber liabilities. Hackers commonly exploit employees through spear-phishing and similar scams. When this happens, employees can unknowingly give criminals access to their employer’s entire system. To ensure data security, organizations must provide thorough employee training.
- Has your management team taken the appropriate steps to reduce cyber risks when working with third parties?
Working alongside third-party vendors is common for many businesses. However, when an organization entrusts its data to an outside source, they risk compromisation.
- Does your organization have a system in place for staying informed on cyber trends, federal, state, industry, and international data security regulations?
Cyber-related legislation can change with little warning, often having a sprawling impact on the way organizations handle business. If organizations do not stay educated on new security regulations, serious fines and other penalties may follow up.
Has your organization purchased or considered purchasing cyber liability insurance?
Cyber liability insurance is specifically designed to address the risks that come with using modern technology—risks that other types of business liability coverage simply won’t cover.
Cyber Risk Questions
The level of coverage a business needs is based on individual operations and can vary depending on the range of exposure. Company management teams need to conduct a cyber risk assessment and identify potential gaps. From there, Daigle & Travers Insurance will customize a policy that accommodates specific needs.
Managing personnel and technology can be a challenge, particularly for organizations that don’t know where to start. When it comes to cyber threats, organizations need to thoroughly review risk prevention tactics. Cyber exposure impacts organizations from top to bottom and all team members play a role in maintaining a secure environment.
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Daigle and Travers Insurance is based in beautiful Darien, nestled between Stamford, Norwalk, and New Canaan. We also serve Fairfield County, Greenwich, Weston, Westport, Wilton, Ridgefield, Redding, Easton, Fairfield, Southport, Trumbull, and parts of Westchester County and Long Island.
Here at Daigle & Travers Insurance, we 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. Give us a call today at (203)-655-6974.