Your Business Isn't Too Small to Care About Cyber Breaches
By: Adam Balentine, ARM
When it comes to Cyber attacks, so many of us have become numb – even apathetic. Almost nightly you see the news describing yet another breach at yet another large corporation. Yawn. We all fall asleep at night knowing that somehow, some way a credit card company, financial institution or government entity will make everything right if our financial or personal information is stolen. Deep down we believe that we are either insulated, or even insignificant, so we likely won’t become the targets of a major cyber attack. But what if someone got unauthorized access to your employee’s personal health information from your company’s database? What if a stolen laptop or mobile device led to sensitive data on your company, your customers and vendors being held hostage by hackers? This happens every day to companies of all sizes and levels of sophistication.
What Would You Do if a Breach Happened at Your Business?
Does your business have a written Data Breach Response Plan? If not, Thomas McGee has a process that may assist with the formation of a plan.
Have you reviewed your company’s strategy around managing Cyber Risk? Are you transferring some, or all of the risk through a Cyber Insurance Policy? Cyber Liability Insurance is an established vehicle for transferring risk so your company’s balance sheet is protected from the threat of data and privacy breach. High limits of coverage are readily available for relatively low costs.
What Are a Few Basic Things You Should Know About Cyber Liability Insurance?
Cyber Liability has two basic components: third party coverage and first party coverage. Third party coverage is provided for Privacy Liability, Security Liability and Regulatory Liability. First party coverage is provided for direct expenses incurred by the insured as a result of Breach Event Costs and Cyber Extortion Costs (including ransom payments). Many cyber policies are modular – meaning, various coverages can be purchased or not – and various limit and deductible structures are available.
Many Cyber Liability insurance policies may be able to offer the following services as an added benefit to their policyholders:
- Breach coaching services
- Forensic investigation (to help determine the source, location and culprit of the breach)
- Legal assistance
- Reputational damage control/ public relations
- Credit monitoring services
- Identity theft fraud resolution services
Thomas McGee has the expertise and experience to work with businesses small to large on developing Cyber Breach Response Strategies. Certainly IT professionals are capable and vigilant when it comes to warding off Cyber attacks. However, sometimes breaches come from the most unexpected of places. Cyber Insurance is a sound risk transfer strategy for protecting your company’s balance sheet in the event of the inevitable breach scenario. Cyber Insurance can also serve as part of your company’s strategic breach response plan as your insurance carrier can help take the lead in navigating the confusing world of investigations, state regulatory requirements and reputational concerns through the breach response services offered by many insurance carriers.
Please contact me if you need assistance assessing your Cyber Risk.
Adam Balentine, ARM
Director of Insurance Operations
816.842.4800 | 800.423.9044