Hackers have locked up your system, and they’re demanding $10,000 to free it up. Should you pay it? Can you trust that they’ll do what they say? And how will this loss affect your bottom line?
This is normally a busy time for your company, but today online orders have almost completely stopped coming in. You’ve been the victim of a DDoS attack. How long will it take to recover you system? Will you be able to make up the lost sales?
Last month, your sales manager lost his phone in an airport. Now it appears your client database has been hacked, potentially exposing both personal and financial information. There is talk of a class-action lawsuit. Will the legal expenses ruin your firm?
Cyber threats are a real risk for your business
Ransomware, phishing, pharming, and DDos attacks… just a few of the words that weren’t even in our vocabulary 10 years ago, but now are frequent front page news. The risks facing businesses are constantly evolving and the statistics are frightening. Even small companies are at risk, and more than half of those that fall victim will be out of business in less than 6 months. No matter what industry you’re in, or how big your business is, you need a comprehensive, up-to-date cyber liability policy.
As an independent agency, General Southwest partners with several companies that specialize in cyber liability risk management.
Won’t my regular business insurance cover my losses?
In most cases, no. General liability, D&O, and other standard business policies were not designed to address cyber risks, and many now contain language that specifically excludes them. To be sure you’re covered, your organization needs a specific cyber liability plan.
Many risks, two types of coverage
It’s important to understand that there is no such thing as a standard cyber liability policy. Every company’s risks are different, and a comprehensive plan needs to be tailored to your unique needs. It’s also critical to know that there are two distinct types of cyber liability coverage, and most companies need to have both:
- 1st party coverage: Provides reimbursement for direct expenses, such as system repair, ransom payments, loss of income, public relations expenses, or the cost of credit monitoring for affected clients.
- 3rd party coverage: Protects you in the event your system or one of your employees is responsible (directly or indirectly) for a cyber incident. Covered expenses might include government fines, legal costs, or claim settlements.
Is it time to evaluate your company’s risk?
Technology changes fast, and along with it the ability of cyber criminals and the types of damage they can wreak on your business. If you don’t have a cyber policy, or if your plan hasn’t been reviewed in more than a year, you’re overdue for an evaluation.
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