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Why You Need Cyber Insurance
Every business, no matter what size, is exposed to digital risk. Typically, businesses are exposed to digital risk in two main ways: Core business operations and sensitive client information. Here’s what to watch for and how to protect yourself:
Core business operations
There are a number of ways a hacker can disrupt a company’s operations. If the business relies on e-commerce the hacker can try and shut down the company’s website. Larger companies can have their internal communications disrupted, and sensitive business data (such as banking passwords) can be stolen and used maliciously. Some enterprising hackers have even figured out a way to lock down computers until the owners agree to pay a cash settlement to the hackers.
To protect yourself from attacks like this, it’s important to treat every link and file found on the internet with suspicion. Never click on a link in an email – no matter how official looking – unless you’re 100% sure you know the sender. Never use work computers on file sharing sites and, if you think you’ve been compromised, don’t take any chances. Run a reputable anti-virus software or call an expert immediately.
It’s important to remember that no system connected to the internet is completely safe from cyber attack. Having insurance that can protect your business during a worse case scenario is a critical part of any digital security strategy.
Sensitive Client Information. Having a hacker disrupt core business operations can be devastating, but having a hacker compromise sensitive third-party information in your system can be much worse.
In just the last two years healthcare firms, governments, Sony, Home Depot, Banks, Target, and EBay have all lost sensitive information including emails, passwords, personal data, and confidential documents to hackers. This is almost worse than just losing corporate information because customers who have had their data compromised are very likely to sue. Ashly Madison’s users sued when the company lost their confidential information, and the lawsuit is expected to devastate the business.
If your company manages a large number of confidential pieces of information, it’s important that these pieces of information are secured by a third-party data security firm. Access to that information must be tightly restricted, and passwords must be regularly changed and never shared over email.
However, no matter how securely the information is stored, there is still a risk that it will be lost. A strong insurance policy can protect against lawsuits caused by a cyber attack and get you back on your feet faster than you would be otherwise able to.
Cooke Insurance has experts in all areas of business insurance, and companies of any size are welcome to sit down with our team for a no pressure consultation of their insurance needs.