Did you know that an average business has a greater chance of having a cyber breach than it does of having a fire? It is true, and your business insurance policy most likely will not cover cyber liability losses.
Technology has enabled the common criminal to get into the world of cyber crime. Small businesses are a prime target, as most small businesses have little to no protection. Criminals can actually purchase programs that can be set up to hack dozens of businesses at the same time. It is important that your business has the right business insurance, including cyber liability insurance. Here are a few of the evolving cyber threats.
These are programs that can be attached to an email or web site. The malware then can target specific systems.
Example–A small retail shop owner opened an email with a malware attached. The hack program then found 1,500 credit card numbers of the shop’s customers. The shop did not know about the hack until customers called about the fraudulent charges. The shop owner incurred over $75,000 in notification and payment expenses.
This scam involves someone posing as a trusted bank or other advisor. The criminal then relies on the business owner or manager believing the call is legitimate and divulging privileged information.
Example–A CFO received a call from a hacker (acting as a bank official) requesting verification of account information. Through the process, the hacker obtained privileged information. They then used this information together with other data to make withdrawals from company accounts.
Key Business Insurance Coverage Offers Real Solutions
- Cyber liability
- Data restoration coverage
- Business income or loss income
- Legal notification coverage and expense