As technology advances, cyber risk grows. No business is immune to the threat of cybercrime – let our industry expertise, renowned brokers, and tailored insurance coverage help protect your company from digital disaster.
In the digital age, it becomes necessary to broaden your business coverage to protect your bottom line and your reputation. Cyber risk insurance is designed to support your business if computer networks are breached, causing information to be stolen or ransomed, business operations to be interrupted, computer systems to be corrupted, and other serious professional consequences.
Cyber risk coverage doesn’t stop at the event, because consequences can stretch on for much longer. Aside from regaining access or recovering lost information, your business may need to deal with things like network repair, legal claims, and public relations services to help restore your reputation and rebuild trust among customers. Getting things back on track can take days, weeks, or months.
What exactly is “hacking”?
You’ve heard the term before, but what does it really mean? Hacking is a type of criminal behaviour that can prey on a computer system or network in a few distinct ways:
Exploits: programs or actions that find and manipulate security flaws on a system’s software or network software.
Malware: software designed to gather info, destroy, encrypt, or otherwise incapacitate your digital network.
Human: a person who physically breaches security measures to steal or corrupt data.
Cyber risk coverage can involve things like:
But this isn’t an exhaustive list of risks and targets. Consider the following realities of cybercriminal activity today and scenarios where cybercrime could endanger your business.
Who needs cyber risk insurance?
Do you handle information electronically? Unless you’re still using pencil and paper to facilitate, record, and process transactions, your data is likely vulnerable. A business doesn’t need to be rooted in the tech sphere to be prone to cybercrime – any business that uses computers is exposed to cyber risk.
Email is a favourite avenue for cyber thieves, and once in your system, they can wreak havoc with malware, ransomware, and other malicious programs. All it takes is one targeted attack to sideline your small business – a timeout you might not be able to afford.
Criminals can fly under your radar
Spear phishing, a method that gains access to your network through email attachments or by clicking on a link, is not only prevalent (in 2017, this accounted for 71% of cyber attacks), but this relatively low-tech route can allow thieves access to your company for a long time.
Some groups dwell inside an organization for years, avoiding detection while they gather more and more sensitive information. Business owners who don’t pay close attention to cybersecurity could be met with a terrible surprise down the line.
Here are some circumstances where cyber insurance coverage can come into play:
Imagine one of your employees had violated company policy by accessing customer data and selling it to a third party. Depending on the size and nature of your system, hundreds or thousands of customers could be affected.
After the employee is caught and fired (and criminally charged), you may need to hire a public relations firm to communicate with the public and work to restore trust – but even that may not be enough to avoid a multimillion dollar class action lawsuit from the affected customers.
Consider a mid-sized manufacturing business that relies on multiple computer systems to organize their metal parts manufacturing operations. A cyber criminal managed to introduce malware to all the systems, forcing the company’s IT department to spend days recovering electronic data from corrupted storage devices and repairing the computer systems to continue operations.
Each day that the business is closed is a day of lost income. But that’s not all: contract deadlines could be missed during that time, which means vendors can experience lost income and delays of their own. In the end, one malware attack could lead to an expensive loss encompassing cost of forensic investigation, legal expenses, business income loss, and even litigation from vendors for breach of contract.
Cybercrime comes in all sorts of forms. If a small professional services company was hit with a denial of service (DoS) attack, which hackers use to make a machine or network resource unavailable to the user or owner, they may have to shut down operations for a while for repairs. In this case, the work related to fixing the software would be covered by a cyber risk plan.
Recover rapidly with Cyber Assist – at no additional cost!
Pre and post-privacy breach services
Incidence response planning
Media relations consulting
Northbridge Cyber Risk policyholders can make use of Cyber Assist services, provided by leading data risk management service provider, CyberScout.
CyberScout can consult with you on proactive measures to protect your business, as well as reactive assistance in the event of a privacy breach. Want more cyber resources? Policy holders will also have access to CyberScout’s secure website, which includes educational resources, data breach regulations, customizable templates, and self-risk analysis.
What can a broker do for me?
An insurance broker can be your greatest asset when it comes to finding the right insurance policy. A broker brings a wealth of insurance expertise, product knowledge, and personalized service to the table, working to protect your company and your peace of mind.
Northbridge believes in the power of strong partnerships. Our preferred network of reputable brokers can help craft a comprehensive policy that’s suited to your unique business.
Are you managing your risk?
Risk is a part of life – risk management should be, too.
Risk is a part of life – risk management should be, too. It can be challenging to make space for risk mitigation in your daily routine, but this is a corner that shouldn’t be cut. After all, even if you have the right insurance coverage, preventing a loss is always better than recovering from one.
Risk management solutions can be as simple as improving the layout of your workspace, or as involved as launching a company-wide training program. Our Risk Services experts can help with both. In fact, we’ve made access to risk management expertise a fundamental feature in every commercial insurance policy.
Whatever the size and nature of your business, it’s important to stay protected. Not sure where to begin?
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