If you haven’t noticed our focus has been heavily weighted in the area of cyber risk! Too many of our friends and clients have been impacted lately by cyber thieves. Yes, we sell insurance, but we are passionate about the benefits of insurance. We are all about Mitigating Risk and Loss Exposure!
So How Does Cyber Insurance Actually Help?
What Does It Cover?
First thing to know here is, in most cases you can design a plan to cover your business’ specific needs. As a generalization Cyber Coverage includes the following:
- Defense and Settlement – civil proceeding or investigation
- Regulatory fines and penalties including forensic examination
- Re-certification services
- Cyber extortion
- Website media
- Business interruption
- Data recovery
- Crisis management and fraud response
- notification to breach parties
- call center operations
- design and implementation of website for advising breach parties
- credit monitoring
- public relations
- associated legal expenses
What It Does Not Typically Covered
- Potential future lost profits
- Loss of value due to theft of intellectual property
- Improvement costs to internal systems after cyber evet
- Your other policies may be “activated” in the event of a cyber incident, but there are likely gaps in coverage for what damages are actually covered. The industry term, “Silent Cyber” refers to cyber loss exposure not covered under traditional, non-cyber insurance policies; namely the exposure is silent.
IT Risk Management
In an effort to further educate our audience we are providing links to our previously published articles on creating a better infrastructure to avoid successful attempts.
- The Risk with Search Engines https://peocompass.com/the-risk-with-search-engines/ Check out the “Take Precautions to Protect Your Business” section
- Cyber Attack Nightmares Continue https://peocompass.com/cyber-attack-nightmares-continue/ Check out the section “Mitigate Your Cyber Security Risks”
- Insurers Are Waking Up to Multi-Factor Authentication https://peocompass.com/insurers-are-waking-up-to-multi-factor-authentication/ Check out “How MFA Helps”
The Wall Street Journal reported that Colonial Pipeline authorized ransom payment of $4.4 million as a result of the company not being able to quantify the magnitude of the cyberattack breach to their system and the length of time to get things up and running again. Feet held to the fire for resolve and the decryption tool provided for ransom payment did not bring full restore back to Colonial. We can all feel the impact of the Colonial hack.
CNN reports that the Justice Department indicated that 2020 was the worst year for cyber attacks with ransomware demands, on average, exceeding $100,000 but as high as tens of millions of dollars. “….A key lesson here is that while technology and automation is good, we must also have the ability to efficiently operate manually as well. Attacks will happen, but how quick can you recover and restore critical services?”, Brian Harrel, former assistant secretary for infrastructure protection at the Department of Homeland Security, as reported by CNN. Having the support of insurance coverage through a Cyber policy is definitely one way to mitigate recovery exposure, should you fall victim.
Libertate Insurance Services has access to a variety of programs for Cyber Risk Coverage. Contact us, let us help you identify your Company’s Cyber Risk and find the best placement for your needs.