Can you guess what the biggest threat to your business is? No, it’s not looting, and definitely not slander, it’s Cyber Breach! Years ago, a big topic was identity theft, and people having their credit cards compromised. As those issues are still common today, there is a much larger issue at hand. If a company has a breach, millions of customers could be at risk instantly, whereas before, people had their private information breached one by one. Can we go back to the old days?
Companies have begun investing heavily in security and creating in-house security teams to protect themselves from having their private information hacked. With millions of people affected by cyber breach across the world, it has become a common issue for businesses. According to Experian, in 2016 personal account information surfaced on the dark web resulting from the data breaches of LinkedIn, Dropbox, and Yahoo in 2012 and 2014. This re-exposed 732,000,000 email addresses and passwords.
How do I know if my business is at risk?
Many people think that a cyber breach can only affect businesses that have online stores, or sell a product or service through a website, however, that is not the case. Your business is at risk if it handles sensitive computer data such as credit card information and bank account numbers. Whether online, or in a computer system, information just isn’t safe anymore. Hackers are able to bypass security software, and can get into your company’s servers to access all the information they want, at times getting through the best security available.
Unfortunately, these days having the best security software and team cannot guarantee the safety of your business. Although they are good investments to have, because they can make it quite difficult for a hacker which may make your company less of a target.
How will it affect my business?
A breach can cause an extensive threat to your financial stability. No matter the size of your business, federal law now requires you to notify every one of your customers affected by the breach. You may need to pay for extensive damages across your business if you are one of the unfortunate companies that has their business breached such as, a PR team for damage control, forensic services to find out the extent of the breach and make the necessary security changes, legal services to protect you from individual and class action lawsuits, etc.
Hackers can also gain access to your employee’s information, such as email, and begin to contact others through that email address. This can create a massive headache for your company. Imagine an executive asking someone within the company for money in an emergency situation. They can contact the finance department and give them a heads up, that way when the employee goes to retrieve the money, there are no red flags. Before you know it, your company just lost tens of thousands of dollars.
How can I protect my business?
Until recently, there was no insurance available to cover cyber liability. Businesses used Commercial General Liability Insurance to obtain coverage for bodily injury and property damage from accidents on their property or in their business, yet this does not protect them from any of the financial losses that can happen from failure to protect the private information of its customers.
Insurance companies now offer stand-alone policies to protect your business from many of the financial pitfalls that were stated earlier, that come with a cyber breach. Prices for these policies vary. Considering what they are protecting, it is well worth looking in to the coverage. The application process can be quite simple depending on the need. Because the insurance company must know many details about spy ware protection, internet usage, etc. it is a good idea to work with your IT team when shopping for Cyber Liability coverage.
If you own a business, and are looking for protection against a cyber breach, MHG Insurance Brokers would be happy to assist you. Also, if you are looking to purchase other various forms of business insurance such as General Liability or Professional Liability, our insurance specialists have the experience to assist your business and offer advice in finding the perfect plan to fit all of its needs. Contact MHG Insurance Brokers today at +1 954-828-1819 or +44 (0) 1624 678668 or visit us online at mhginsurance.com.