You've Been Hacked! The Importance of Cyber Liability Insurance
Your information system could be hit anytime. Are you protected from loss?
There is no denying it now: Cyber-attacks are a fact of life for any business, big or small. From the big corporation in New York to the small business in Annapolis.
Ransomware attacks increased by 105% in the first quarter of 2019 when compared with the first quarter of 2018. There was a 93% increase in ransom demands as hackers wanted over $224,000 on average to release data. They range from cities to universities to healthcare facilities. Some gave in and paid the hackers, while others did not and lost all their data.
Data, such as credit card numbers, social security numbers, names, addresses, and email addresses have been stolen by the millions. Every business, municipality, organization, and individual is at risk.
The good news is that you can protect yourself, your customers, and your employees with cyber liability insurance. If you are considering it, here are some ways it can keep hackers from your data and electronics:
1. Covers financial losses if your security is breached: If your business has been stopped, you can get compensated for it.
Ransomware and Extortion coverage: The most common way that hackers make their money is by hijacking IT systems and demanding money to release them. If you are hacked and pay, which we don’t recommend, you may be eligible for reimbursement for the ransom cost.
2. IT system rebuild: Data is stolen, for sure when a cyberattack occurs. However, it also leaves damaged software, hardware, and other systems behind. Cyber liability covers the cost of IT labor, tools, system replacements, and new databases.
3. Theft protection for customers affected by the cyberattack: Customers who were victims of the attack. Cyber liability may cover this loss for up to one year after the loss.
4. Forensic analysis: After the systems have been rescued, an IT forensic systems analyst may be needed to install cyber security tools and look for any hidden activity in your computer system. They should then be able to determine the source of the breach and help you claim the insurance company.
5. Legal assistance: A lawyer who specializes in cyber security breaches may also be needed to field claims from customers and provide counsel.
6. Slander: The cyber attacker may use your website, social media, email system, and other tools to slander other parties or spread false communications. This is a major liability risk. Cyber liability insurance covers the cost of legal counsel to fight hackers.
As you can see, hacking into an IT system can cause major damage to your company or organization. The cost of legal counsel alone can get into hundreds of thousands of dollars. Once you add the loss of data, labor hours, and bad publicity, it could be enough to close a company’s doors forever. The cost is staggering but it may all be saved if you get cyber liability insurance.
Lindquist Insurance offers cyber liability insurance that can protect you from ransomware, data loss, legal fees, and other liabilities. Call (301) 694-0008 to speak to our experienced and licensed insurance agents for a consultation and quote. We serve the Annapolis, MD, and Frederick, MD areas.
*** For more cyber liability statistics, visit the AJG website. The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.
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