Cyber Coverage & Tactics To Thwart An Attack
When you think about typical causes of business interruption, natural disasters such as fires, earthquakes and floods probably come to mind first. As businesses increasingly rely on computers and digital storage of essential data, a cyber attack will continue to be a potential exposure. Read on to learn how a cyber attack could lead to a business interruption and what you can do to mitigate the risk.
How Might A Cyber Attack Interrupt My Business?
Hackers, thieves and other unauthorized individuals have become adept at exploiting weaknesses in corporate computer systems, whether through traditional hacking methods or social engineering. A cyber attack could completely cripple your ability to perform normal business activities. Damage could be caused by:
- A malicious code that renders your website unusable
- Distributed denial of service (DDoS) attacks that make your website inaccessible to employees and customers alike
- Viruses, worms or other code that deletes critical information on business hard drives and other hardware
- Related Matters: Hacked firms may find investment harder says KPMG
It is easy to see how a cyber attack could paralyze any organization. Unfortunately, many smaller businesses don’t have the human or financial resources to detect the problem and fix it, which only increases the length of an interruption.
7 Ways To Prevent Collateral Damage To Your Business
A common saying in the cyber security world is, “It’s not if you’ll be a victim of a data breach, but when.” While 100 per cent protection is impossible, you can help lower your chance of business interruption due to a cyber attack by:
- Creating a formal, documented risk management plan that addresses the scope, roles, responsibilities, compliance criteria and methodology for performing cyber attack risk assessments. This plan should include a characterization of all systems used at the organization based on their functions, the data they store and process and their importance to the organization.
- Ensuring all firewalls and routers are secure and kept up to date to help defend against a cyber attack.
- Implement a cyber security policy that educates employees about the damage a cyber attack can cause.
- Downloading and installing software updates for your operating systems and applications as they become available.
- Implementing a strict password policy and have employees change their system passwords every 90 days.
- Limiting employee access to company data and information as well as limit authority to install software.
- Making sure you are covered by a cyber liability insurance policy.
Cyber Coverage Can Help
Most traditional commercial general liability (CGL) policies will not cover business interruption losses due to a cyber attack event. Cyber liability coverage can fill that void. Should your business be unable to perform normal business operations, a cyber liability insurance policy can help pay for expenses related to an interruption such as:
- Lost income due to the event
- Profits that would have been earned had the event not occurred
- Operating expenses, such as utilities, that must be paid even though business has temporarily ceased
- Rented or leased equipment
Cyber liability coverage also helps to protect your business from:
- Data breaches, including costs for customer notification, some legal costs and credit monitoring for those affected
- Damages to third-party systems, if, for example, an infected email from your servers crashes the system of a customer or vendor
- Data or code loss due to a natural disaster or malicious activity. Physical destruction of equipment is covered under a different policy.
- Cyber extortion, including ransomware, which is malicious code installed into a computer on your network that prevents you from accessing it until a ransom is paid
Tactical advance prep for a cyber attack can give your business an advantage before, during and after a cyber attack.
Contact an ALIGNED Insurance Advocate today to learn more about cyber coverage and how our experts can help protect your organization from damages associated with a cyber attack.
Source: Insurance Business