Nearly all businesses use computers daily. Did you ever stop to think about what would happen if your business is a victim of a cyber attack? Do you have plans in place if such an event may occur? Are you insured for such an attack? What cyber attack insurance does your business need?
Social engineering attacks
A Social engineering attack is where a perpetrator deceives an individual to give access to sensitive information about the victim’s business. Therefore, a social engineering attack usually has a human element in play. The most common type of social engineering attack is phishing.
Phishing
Phishing is where the perpetrator pretends to be a trusted source (such as a bank, a big company, or a governmental agency) and misleads people into giving their confidential information. The business owner is tricked into taking some action such as clicking on a malicious website or opening an attachment thinking it is from a trusted entity.
Malware Attacks
Malware is malicious software that is intended to damage a computer, network, or server. These programs are used to compromise a network, stealing information, or encrypting files.
Ransomware
Ransomware is a type of malware that threatens to either publish the victim’s data or prevent the victim from accessing its data, unless the perpetrator is paid a ransom by the victim. This is usually done by placing malware on the system which encrypts the victim’s files, and then the perpetrator will demand payment from the victim to unencrypt the files.
What type of cyber attack insurance does your business need?
General liability policies usually do not cover cyber attacks and data breaches. Many businesses can benefit from a cybersecurity insurance policy. But not all cybersecurity insurance policies are built equal. For example, some policies might not cover phishing, while others might allow you to add phishing protection. It is very important to speak to your insurance agent to make sure your cybersecurity insurance meets your business needs. A data breach may harm reputations and place clients and employees in jeopardy. This makes cyber insurance an intelligent precaution for nearly all businesses. Cyber insurance can protect a business from the liability caused by data breaches that involve the disclosure of confidential information such as credit card details, social security numbers, and various other account information. Cyber insurance might cover some or all of the following:
- Legal defense for your business from potential lawsuits
- Fees related to the cyber attack
- Costs relating to informing the applicable customers of the data breach
- Expenses related to data restoration
Unsure if you need cyber attack insurance? Contact an insurance professional who can help look at various cybersecurity insurance policies. At E&Y AGENCY, LLC we work with many insurance carriers to find you the best insurance at the best rate.
