Why is cyber liability coverage needed?
Modern businesses rely heavily on technology to run their operations. With this increase has come an uptick in ways bad actors can attempt to access your business data. From identity theft to ransomware, the risks associated with technology are constantly expanding.
Is my business really at risk?
Small businesses are not immune from the risk associated with technology. CISA states, “thousands of small and medium businesses (SMBs) have been harmed by ransomware attacks, with small businesses three times more likely to be targeted by cybercriminals than larger companies and total cost of cybercrimes to small businesses reached $2.4 billion in 2021.”
An article from the University of Maryland states, “Once hit with a cyber-attack 1 in 5 businesses completely cease operation until it is resolved….A cyber-attack on average costs businesses of all sizes $200,000. This high cost leads to roughly 60% of small businesses folding within 6 months of a cyberattack.”
Ransomware Coverage
Ransomware coverage is generally included as part of the Extortion Threat portion of a cyber liability policy. This coverage can help keep your business operating and protected from the high cost of ransomware. This can include reimbursing the value of ransom payments, fees and costs of a security firm or organization, and other reasonable expenses incurred with the agreement of your insurance carrier.
Social Engineering Coverage
“Social engineering is the attempt to trick someone into revealing information (e.g., a password) or taking an action that can be used to compromise systems or networks” as defined in a report from the NSA and it US partners. This type of cyber attack can be difficult to spot and can come in something as innocent looking as an email from what appears at first glance to be a trusted source. This coverage can help reimburse your business for money lost in this type of attack.