Business interruptions because of cyber attacks are becoming more and more common. In fact, the average Canadian business will payout out $1,000 for ransomware attacks and 43% of cyber breaches claimed small businesses as victims, according to a 2019 Verizon Study.
How can cyber attacks impact your business?
Hackers and thieves have become adept at exploiting weaknesses in business’ computer systems, whether through traditional hacking methods or social engineering. There are several types of attacks that could completely cripple your ability to perform normal business activities, including:
- Malicious code that renders your website unusable
- Distributed denial of service (DDoS) attacks that make your website inaccessible to employees and customers alike
- Viruses, worms or other code that delete critical information on a business’ hard drives and other hardware
Imagine what would happen if one of your vendors suffered an attack, resulting in a complete shutdown of its warehouse or website. Unfortunately, these types of third-party attacks are common and largely out of your control.
Ways to prevent future cyber attacks:
- Create a formal, documented risk management plan that addresses the scope, roles, responsibilities, compliance criteria and methodology for performing cyber risk assessments. This plan should include a characterization of all systems used at the organization based on their functions, the data storage process, and their importance to the organization.
- Make sure all firewalls and routers are secure and kept up to date.
- Implement a cybersecurity policy that educates employees about the dangers of computer intrusions and how to prevent them. Access Insurance Group Ltd can help you draft a cybersecurity policy specifically tailored to your company.
- Download and install software updates for your operating systems and applications as they become available.
- Implement a strict password policy and have employees change system passwords every 90 days.
- Limit employee access to company data and information, and limit authority to install software.
How can cyber liability coverage help?
Traditional commercial general liability (CGL) policies will often not cover business interruption losses due to a cyber event. Luckily, cyber liability coverage can fill that vacuum.
A cyber liability coverage also helps protect your business from the following events:
- Data breaches, including costs for customer notification, some legal costs and credit monitoring for those affected
- Damages to third-party systems, if, for example, an infected email from your servers crashes the system of a customer or vendor
- Data or code loss due to a natural disaster or malicious activity. Physical destruction of equipment is covered under a different policy.
- Cyber extortion, including ransomware, which is malicious code installed into a computer on your network that prevents you from accessing it until a ransom is paid
Should your business be unable to operate, a cyber liability policy can pay for:
- Lost income due to the event
- Profits that would have been earned had the event not occurred
- Operating expenses, such as utilities, that must be paid even though a business has temporarily ceased
- Rented or leased equipment
Contact us today to find out how we can help you avoid business interruption.