Cyber Liability Insurance
If there’s one thing that ransomware attacks, data breaches, and malware have in common, it’s that they can all spell big trouble—and big expenses—for your Scranton & Wilkes-Barre businesses. Even if you have the best security measures in place, there’s always a chance that something could slip through the cracks.
After a couple of years that were filled with major data breaches and other cyberattacks, it’s become clear that no business in Scranton & Wilkes-Barre is immune to the risk of a cyberattack. As businesses increasingly rely on technology, they are also exposed to new risks. Cybercriminals are aware of this fact and constantly finding new ways to take advantage of vulnerabilities.
The Cyber Landscape
The number of cyberattacks is on the rise, and they are becoming more sophisticated. In 1988, the Morris worm became the first major malware outbreak, infecting about 6,000 machines. Little did we know that this was just the beginning. These types of threats and attacks have now become more common and more sophisticated.
Today, words like “ransomware“, “malware”, and “data breach” have become part of our everyday vocabulary. Cyberattacks are no longer something that only happens to big businesses—they can happen to any business that uses technology, which is just about all of them. Despite your business’s best efforts, there’s always a chance that you could be the next victim of a cyberattack.
Understanding Cyber Risks
As businesses throughout Scranton & Wilkes-Barre become more reliant on technology, they also become more vulnerable to cyber risks. Cyber risks are any type of risks related to the use of technology, including but not limited to hacking, identity theft, and data breaches. Cyber risk can be broken down into three main categories:
- Security risks: These are risks related to the security of your network and data, including but not limited to hacking, viruses, and malware.
- Privacy risks: These are risks related to the privacy of your customers’, patients’, or employees’ personal information, including but not limited to identity theft and data breaches.
- Compliance risks: These are risks related to your compliance with laws and regulations, including but not limited to the Gramm-Leach-Bliley Act (GLBA) and the Health Insurance Portability and Accountability Act (HIPAA).
While many businesses are aware of the general risks associated with technology, they may not be prepared for the impact of a cyberattack. To protect your business from the impact of a cyberattack, you need to have cyber liability insurance.
What is Cyber Liability Insurance?
Cyber liability insurance is a type of insurance that can help to protect businesses from the financial damages associated with a cyberattack. This type of insurance can help to cover the costs of things like data recovery, legal fees, and any other expenses that may be associated with a cyberattack. For example, if your business is the victim of a ransomware attack, your cyber liability insurance policy can help to cover the costs of data recovery. If your business is sued as a result of a data breach, your policy can help to cover the costs of legal fees.
Why Do You Need Cyber Liability Insurance?
Small businesses are especially vulnerable to cyberattacks because they often do not have the resources to recover from an attack, and they may not be able to afford the fines, penalties, and fees that can be associated with these attacks. These costs can add up quickly, and they can be difficult for a small business to afford.
Cybercriminals do not care about the size or current state of your business—they will target any business that they think is vulnerable. Many executives and officers are under increased pressure to protect their companies from cyberattacks. Today, more and more executives and officers worry about the possibility of a cyberattack, as they are often held responsible for any damages that occur as a result of an attack. As the number of cyberattacks increases, so does the need for cyber liability insurance.
What Does Cyber Liability Insurance Cover?
Cyber liability insurance policies vary, but they typically provide coverage for things like data breaches, cyber extortion, and cybercrime. Some policies also provide coverage for things like business interruption, reputational damage, and cyberstalking.
Data breaches are one of the most common types of cyberattacks. A data breach occurs when sensitive information, such as credit card numbers or Social Security numbers, is stolen from a business. Cyber extortion is another common type of cyberattack. In a cyber extortion attack, a hacker will threaten to release sensitive information unless a ransom is paid. It is important to mitigate every risk associated with your business, and cyber liability insurance is one way to do that.
Cyber liability insurance will cover costs associated with a cyberattack, including but not limited to:
- Forensic expenses: These are costs associated with investigating a cyberattack. This may include the cost of hiring a computer forensics expert to help identify the source of the attack.
- Notification expenses: If your business is required to notify customers, patients, clients, or employees of a data breach, you may be able to recover the costs of these notifications with a cyber liability insurance policy.
- Credit monitoring expenses: If you provide credit monitoring services to customers, patients, clients, or employees after a data breach, you may be able to recover the costs of these services with your cyber liability insurance policy.
- Public relations expenses: If your business hires a public relations firm to help repair its reputation after a cyberattack, your cyber liability insurance policy may allow you to recover the costs of these services.
- Legal expenses: If your business is sued as a result of a data breach, you may be able to recover the costs of legal fees with your cyber liability insurance policy.
- Regulatory expenses: If your business is required to comply with state or federal regulations after a data breach, you may be able to recover the costs of compliance with a cyber liability insurance policy.
When selecting a cyber liability insurance policy, it is important to choose a policy that meets the specific needs of your business. Some policies only cover certain types of risks, while others provide more comprehensive coverage. It is also important to make sure that you are comfortable with the deductible and limits of your policy. The right policy will provide adequate coverage for your business without breaking the bank.
At tech42 LLC, we will work with you to understand your risks and exposures. We will also help you confirm that you have the proper controls in place to prevent a data breach from occurring in the first place. Call us at (570) 209-7200 or email us at [email protected] for more information.