In today’s technology-dependent world it is important to guard your information. More importantly, you have to guard sensitive data for your business. Every business, from small mom-and-pop shops to large corporations, has some kind of cyber security risk these days. No matter what industry your organization is in, cyber liability insurance is a must.
So, what is cyber liability insurance and how do you decide how much coverage you need? Here’s what you need to know.
What Does Cyber Liability Insurance Cover?
Unfortunately, the question isn’t whether or not your business will suffer from a data breach. The question is when a cyber hack will occur and how you’ll be prepared to handle it. Cyber liability insurance is an insurance policy that provides companies with different coverage options to help protect the business from any data breaches.
The idea behind cyber liability insurance is simple. Your policy will cover you before and after any breach, that occurs. It will help pay for any fallout from the cyber security breach as well as any costs associated with remediation. Coverage will even help you in the event that there was an omission or error on your part.
While the internet is a great place to be, there are people looking to exploit any vulnerabilities there may be. Cyber liability insurance will cover any financial loss experienced due to social engineering, reverse social engineering, or funds transfer fraud. Each of these cybercrimes involves someone deceiving your or your clients and results in the loss of money or data. With the right insurance policy in place, you won’t have to fret about being a victim of one of these crimes.
Cyber liability insurance will also help you cover the cost of recovering your data in the event of a breach. Where data recovery is concerned, insurance policies typically cover the cost to repair, restore, and even replace any data or software impacted in the breach. This includes the cost of resolving any claims and it also covers violation of privacy/consumer laws, negligence, breach of contract, and any regulatory investigations that may occur. It will even protect your company if a failure occurred with your network security.
Data Breach Notifications
Insurance will also cover costs associated with responding to a data breach. This includes forensics costs to identify the breach, any costs associated with notifying the people impacted, and credit management services. It will also cover crisis management and public relations costs to handle the issue. In some cases, the insurance will even assist with notifying clients and employees about the breach. Notifications will be sent out to individuals who were affected along with appropriate next steps.
Should You Invest in Cyber Security Liability Insurance?
In general, the way we do business with each other today raises the possibility of a cyber attack on your customers or organization. Because much of our transactions occur in cyberspace now, it is important to have protection in place for one of your most important assets: your data.
Every company in existence should have cyber security liability insurance. If your business accepts credit card payments, uses mobile devices/computers, or keeps/stores customer data, you should have cyber insurance. Businesses that handle medical and financial records or handling other sensitive data, for instance, should hold cyber security liability insurance.
Importance of Investing in Cyber Security Insurance
If your company’s data is compromised or stolen it can have a negative impact on business. Oftentimes, it leads to lost customers, revenue, and productivity. In some cases, your retention rates may even suffer because of the hit to your reputation.
Today, the question isn’t whether you’ll get hacked or not, it is when the hack will happen and how well-prepared you’ll be to handle it. Cyber security insurance helps cover costs associated with a breach, as mentioned above. It can also help make remediation efforts in a timely manner. How your company reacts to a breach and how prepared you are will speak volumes to your business’s organization and preparation.
From a financial standpoint, it could cost you big time if you don’t have an insurance policy in place. Take Sony’s breach in 2011 as an example. The company faced more than $171 million in costs related to the data breach, some of which could have been covered by a cyber liability insurance policy. Surprisingly, Sony didn’t have that kind of policy in place. That left them to cover every penny of the costs associated with the attack.
For companies of any size, this kind of breach can be catastrophic. Insuring yourself against hackers and cybercrime can help mitigate some of the risks of doing business today.
Choosing A Cyber Security Insurance Policy with Odell Studner
Data has become one of the most valuable assets a business can have. Because of this, protecting your data has become a top priority. Without the proper insurance coverage and data management, your business is at a higher risk.
A breach can lead to a huge disruption in workflow and it is important to guard your company against cyber threats. However, there is no one-size-fits-all policy. You will need to address your business’s specific needs and mitigate different risks than another company might need to.
Choosing to work with Odell Studner to find a cyber security insurance policy that fits your needs will help you guard your business against the inevitable breach.
The team at Odell Studner was created with your business’s cyber security needs in mind. We partner with cyber security experts who will help assess your company’s overall cyber threat risk. After gaining a full understanding of the kind of threats your organization faces, we will work with you to draw up an actionable plan to protect your business.
Here are some of the specific services we offer to help identify and mitigate the security risks facing your business.
Odell Studner offers penetration testing to help assess deficiencies in your current security system. Then we identify risks and analyze the potential effect on your business. The testing system mimics a cyber attack. Our analysts will then exploit your network to find any weaknesses. Once the test is complete, we can help prioritize certain risks for action and help you pinpoint a cost-effective way to keep your data secure.
Our brokerage takes a multi-step process to assess the overall risk for possible cyber security issues for your business. This includes penetration testing, as mentioned above, and a 99-point information risk audit that assesses your network security, policies, technology, governances in your company, and your current security measures.
Analysts are also able to imitate specific attacks, such as phishing, to find external weaknesses in your network security. All of this gives the team at Odell Studner a big picture view of your company’s cyber security health and what we can do to help improve it. Then, our team can help come up with a plan to avoid and mitigate potential risks. Better yet, we can minimize your overall exposure altogether.
Managing exposure to potential threats is essential. After we’ve fully assessed your risk, we can formulate a plan to help minimize the exposure to possible risks. At the end of the day, the cyber security of your business is only as strong as your staff’s knowledge on the subject.
You’ll want to have a cyber security training program that you require employees to complete. Educate them about the dangers of cyber attacks and how to spot phishing and other threats.
Odell Studner can assist you with coming up with a training program that suits your business’s needs.
Invest in Cyber Security Insurance Today
Cyber liability insurance is your first step to ensuring all of your digital information is safe. The type of coverage you will need will vary depending on your business’s risk level. You will want to have risk assessments performed and your current security measures fully examined. Once all of the weaknesses in your current system are addressed, you will also need to educate and train the individuals working within your network on a daily basis.
Careful attention to detail and broad knowledge of cyber security threats are needed to formulate an effective plan. Thankfully, the professionals at Odell Studner are here to assist you. We can help you assess your business’s risk and come up with the best coverage possible to address each issue. Learn more about our services and how we can assist your organization with its cyber security.