Insurance for Cyber Attacks
As a business owner you have many things that keep you awake at night. Unfortunately, you can now add cyber crime to your list. And the cyber crime list alone is a long one.
Viruses are probably the highest profile threat to your digital data and systems. There are other threats such as: online hackers, vandals, and industrial spies, who pirate intellectual property or confidential information. Other threats include e-extortion, brand defamation and libel, as well as website hijacking where legitimate material is replaced with false or bogus information.
A significant percentage of attacks are made by simply careless workers who innocently damage your systems, or by vengeful employees.
Cyber coverage (also known as an e-commerce policies, e-business insurance, network security policy, information security insurance, cyber risk insurance, network security insurance, pirate policy, or hackers insurance), is a special type of coverage when computers are hacked, crippled by a viral attack or denial-of-service attacks, charges of copyright infringement, Web content liability and other technology-related losses.
Although a company’s IT department works hard to keep their organization’s data and computer systems secure, it has become clear that cyber insurance is a vital part of protecting the business from a wide range of losses such as:
- Lost or stolen data
- Violation of privacy laws
- Intellectual property infringement
- Social media-related risks
- Disruption of your e-commerce services by:
- Website hosting services
- Online inventory control services
- Credit card or point-of-payment authorization services
These assets are protected by e-commerce insurance, or an e-business policy, or an intellectual property policy.
How Big A Problem Is Cyber Crime?
Big, and getting bigger. Businesses are attacked by amateurs and professionals. The amateurs often get caught and we read the reports in the media. Professionals rarely get caught and we rarely read about it in the newspapers. Big corporations don’t want their shareholders and the public to hear about it.
Research shows that the professional attacks come from hackers outside the organizations, as well as from internal sources. Some security experts estimate that inside jobs account for as much as 80% of cyber incidents. As can be imagined, disgruntled employees have both motive and access to sensitive data, and that is often the case for former employees, as well.
Doesn’t My General Liability Insurance Cover My Business For These Losses?
Traditional liability products do not address internet exposures and the risks involved in internet business. Cyber liability insurance protects you from these exposures arising out of internet communications.
To help understand the value of cyber insurance, think of the building your business operates in, which has a sprinkler system and fire extinguishers. Even with this protection, you still buy fire insurance. Likewise, you may have anti-viral software and firewalls installed on your computers, but you still need cyber liability insurance.
For peace of mind and uninterrupted business processes, contact our business insurance experts. We will work with you to identify the type of cyber crime insurance you need. No more. No less. Call or email us today!