Sure, cyber insurance can protect your company from data breaches. However, whether you’re operating a small clinic or a global conglomerate, you should demand much more of your insurance to better protect your business against digital hackers and thieves. At Grand Mutual Insurance Services in Woodland Hills, CA, we offer comprehensive cyber insurance that handles the discovery and recovery stages as well as the direct cost of data breaches.
Expanding Your Cyber Insurance
You need coverage that gives your organization the resources needed to identify cyber thieves, protect and notify impacted parties, and shore up your defenses against future threats. Here are a few examples of what your policy should cover.
Ransomware Attacks
Ransomware software encrypts your data and demands payment for decryption. Cyber insurance helps companies mitigate the financial impact following a ransomware attack. With ransomware written into your covered risks, your company will receive a payout to cover losses. This is the ideal way to offset the cost of this type of cyber risk.
Social Engineering Attacks
Hackers sometimes send fraudulent emails pretending to be key members of the organization, such as the CEO or CFO, in an attempt to obtain login credentials, bank account information, and other security details. Fraudsters use this information to access funds and valuable information. Social engineering fraud insurance can protect your company against losses related to money transfers, securities, or other property compromised by fraudulent instructions. These hackers may pose as clients, vendors, suppliers, and other trusted entities. Depending on how your policy is written, cyber insurance may include training and other prevention measures.
Supply Chain Vulnerabilities
When cyber criminals cannot trick or code their way through the defenses your company has set up, third party vendors and customers pose an attractive target. Chances are that your organization has electronic ties to multiple vendors, partners, and suppliers as a matter of convenience and efficiency. However, every point of access represents a potential temptation for digital fraudsters. Besides shoring up your security throughout the supply chain, you can protect your company against attacks with the right cyber insurance partner.
Talk to your Grand Mutual Insurance Services agent about these and other threats included in a premier cyber insurance policy that meets your budgetary needs.
Strategies to Choose the Right Cyber Insurance Coverage
Assess your risk exposure. How likely is it that your company will experience a data breach or other cyberattack? No matter how well you prepare, the nature and tenacity of cyber criminals makes it more than likely that your organization will face a major breach at some point. Larger organizations have historically received the most attention, as they make attractive targets. However, medical practitioners, small businesses, and government agencies all receive their share of threats as criminals expand their net of organizations to target. Tools such as NIST Cybersecurity Framework can help you identify threats and cyber insurance can provide a safety net if you experience an attack.
Consult a professional. Find a firm or consultant that specializes in cybersecurity. Expert advice and guidance can help you conduct a thorough risk assessment. An IT consultant can help you inventory software, hardware, devices, and processes that create an opportunity for hackers to exploit weaknesses. Besides designing secure systems and plugging holes, you’ll also need insurance coverage to back up your governance and risk management strategies.
There are two approaches to cyber insurance:
- First-party coverage: Covers direct costs for items like business interruption, data recovery, ransomware payments, and notifications.
- Third-party coverage: Handles lawsuits and liability risks involving customers, supplies, and other partners.
Ideally, you’ll need both types of coverage, but your insurance agent can help you strike a balance that works for your organization.
Regulatory Landscape and Compliance Challenges for Businesses
To navigate legal requirements, you need a working knowledge of current compliance standards that protect privacy. These include GDPR, CCPA, and HIPAA regulations, as well as industry-specific mandates. Besides putting your reputation on the line, data breaches and cyber-attacks may result in fines and penalties.
Businesses must become adept at implementing complex regulatory frameworks in various jurisdictions. Build a compliance team that consists of internal IT stakeholders, external cybersecurity consultants, and an insurance company that has your best interests in mind.
Case Studies
In 2014, the so-called Guardians of Peace hacked Sony Pictures Entertainment. The hackers stole sensitive information, leaking embarrassing messages to journalists that compromised the company’s reputation. In 2016, Marriott bought the Starwood hotel chain. During the acquisition, Marriott didn’t conduct a cybersecurity audit. So, it failed to find cybercriminal activity affecting Starwood’s reservation system. The compromising coding was found only after many more guests had their personal information stolen.
Cover all your bases by taking steps to prevent cyberattacks against your organization. At the same time, you need cyber insurance to help you recover if the unthinkable happens and your systems experience a data breach or other attack.
Contact a Local Business Insurance Agent
At Grand Mutual Insurance Services, we are committed to providing all the information you need to protect your employees, customers, suppliers, and other partners. Contact GMIS today for a free consultation on your existing cyber insurance policy or affordable options to add this coverage to your business policy.
Have questions? Our team at GMIS is here to help.
At Grand Mutual Insurance Services, we are committed to providing you with the most up to date information on the insurance market. Reach out to GMIS today for personalized guidance, and maximize advantages for growth and success:
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888.732.5994
