Email scams, ransom-ware, lost sales? Cyber Insurance – a low cost protection

Every year Verizon publishes a Data Breach Investigations Report on cyber attacks and hacks. The summary of their 2018 report includes some eye-popping info – 4% of people will click on an email phishing campaign, even if they are already been caught before! The report also identified ransom-ware as the top malware threat, and alarmingly states that 68% of breaches take months to discover.  What can you do to protect your business’ electronic systems, financial access, information and funds? 

Make sure your employees understand cyber security, and can spot a fraudulent email. If a vendor or supplier emails asking you to send payment to a new bank and account, double check before transferring funds. Encrypt sensitive data, and consider restricting access to certain systems. Do all employees need access to sensitive information? 

You can also look at cyber insurance – a catch all name for an insurance coverage that is evolving along with our use of technology. The best cyber insurance policies will offer legal and computer breach expertise, along with coverage for lost sales if your system is down, coverage for funds an employee emailed to someone pretending to be your CFO, regulatory fines, compliance and notification costs. In many cases liability limits of $1 million as well as training resources and expert response are available for under $2,000. The terms and limits vary widely in cyber liability policies. There is not a standard form in the insurance industry yet, so make sure your agent understands your potential exposures and concerns. Take steps now to avoid your business name in the next headline about a cyber attack!