Add to this, the ongoing and collateral costs of an online breach of security: Here are some things to consider:
- Customers can quickly lose faith in a business that falls victim to an online attack that can potentially undermine their privacy.
- Paying ransom to hackers – an unfortunate but necessary reality for some businesses – can be burdensome at best or financially devastating at worst.
- Public relations expenses that cover the cost of rectifying a damaged reputation can also be an ongoing challenge.
Unfortunately, biggest cyber security concern for your business is that online breaches of security are becoming increasingly common.
The internet liberates businesses – but also puts business at risk
The internet plays a key role in how today’s organizations conduct business. From reaching current and prospective customers, to making financial transactions and storing client information (like credit cards and personal details) It’s impossible to deny the power of the online world in shaping today’s business climate.
But as organizations continue to enjoy the power of the web, hackers are also leveraging cyberspace as a gateway to attack businesses. One of the most prominent cyber attacks
in recent memory affected 70 million people in the US and Canada. Unfortunately, sensitive personal and financial information was exposed, that put the company’s customers at risk of identity theft and fraud. Ultimately, it resulted in massive financial repercussions not to mention the intangible damage to business reputations.
And while attacks on large corporations and governments tend to generate the most news coverage, many small and medium-scale businesses
that handle information and money online, have already fallen victim to hackers and leaks.
How can I protect my business from cyber crime?
While proactive measures that shore up cyber security against the potential for a cyber hack are important, no business is ever fully protected from the damaging effects of cyber crime. A comprehensive cyber insurance plan
is one of the most effective ways to mitigate the financial and reputational risks associated with cyber attacks and information hacks.
What does cyber insurance cover?
There are countless cyber insurance plans, all tailored to the needs of business based on scale and sector. Cyber liability insurance generally covers expenses related to both first parties and claims by third parties, including:
Information Property Protection
Cyber insurance protects your organization from a customer who claims that an online security breach has caused them financial loss. Beyond that, information property protection works to mitigate the risks or losses incurred by a network security failure – or an attack that damages the system. It can also cover the cost of repairs.
This is one of the most common forms of cyber security breach – and can result from something as simple as a lost USB stick or laptop. Sensitive client information can easily be compromised. This feature protects you from the costs related to an actual or alleged breach of client information and includes costs incurred by your customer in notifying other affected parties.
Theft and extortion threats
Cyber insurance also protects against threats or extortion from hackers, which can include:
- Preventing access to your computer system
- Introducing a virus to your systems
- Damage to your brand or reputation by posting false or misleading comments on social media
- Investigation and/or settlements of threats
Hackers can cause serious damage to your computer systems, causing malfunctions or failure. If your business operations are interrupted as a result of cyber crime, cyber liability insurance will protect against financial losses related to both your business and your current/future clients.
Software and data integrity
If a hacker compromises your software or leads to the loss of important data and information, cyber insurance can cover costs related to:
- Investigation of the hack
- Crisis management
- Data restoration
Multimedia liability & advertising injury
This function protects you from defamation claims including, slander, libel and trade libel that causes emotional distress or outrage. It also protects against the risk of copyright and trademark infringement, which can be as simple as grabbing a photo from the internet and reposting without credit or permission.
The bottom line: Make sure your business is protected!
In today’s online world, cyber liability insurance is essential for any business, regardless of size. No organization is immune to the threat of a costly, injurious cyber hack. Take the necessary steps to protect yourself and mitigate the potential losses.
Learn more about Ensurco’s comprehensive business insurance solutions. One click will help you get protected … https://ensurco.ca/Insurance/Business