In this day and age, organizations rely on computers, networks, and electronic data to complete essential tasks. With most companies implementing work-from-home guidelines due to the coronavirus pandemic, office staff are dependent on technology like never before. For organizations unfamiliar to the challenges of having staff work-from-home, there are dangerous cyber risks at play, such as hacking and data breaches, which can lead to costly damages for organizations trying to navigate these new waters.
Cybercrime is the fastest growing crime in the United States, and it’s increasing in complexity and cost. In 2019, cybercrime costs businesses over $2 trillion, and by 2021, it is estimated to cost the world $6 trillion annually. Because of this, the team at Hawley and Associates work diligently to ensure our clients are fully protected against any unforeseen circumstances.
It’s clear that cybercriminals have taken advantage of the opportunities presented by the pandemic and businesses are more likely to become victims as attacks quickly advance. Social engineering is a tool of deception currently being used that relies on manipulating human emotions to bypass our critical thinking – a game that cybercriminals play all too well. They exploit uncertain or emotional situations to manipulate people into taking actions they would typically refrain from.
Attackers have been reveling in the chaos the pandemic has created by taking advantage of employees working from home, without the technical protections that their organization’s IT network usually provides. Additionally, many employees are working from their personal computers, often shared with family members, all while processing sensitive and potentially personally identifiable information (PII) without the extra security of managed endpoint protection. Many standard insurance policies are not intended to act in such dispersed environments, leaving policy holders less protected against wire transfer fraud and other attacks.
WHY CYBER INSURANCE IS IMPORTANT
The loss, compromise or theft of electronic data can have a detrimental impact on a business, including the loss of customers and revenue. Businesses may also be liable for damages stemming from the theft of third-party data. Cyber liability coverage is crucial to protect businesses against the risk of cyber events, including those related to breach of data, lost devices, and terrorism.
Cyber insurance policies are sold by many of the same carriers that provide business insurance, such as E&O insurance, business liability insurance and commercial property insurance. Most policies also include first-party and third-party coverage. First-party coverage applies to the losses that directly impact a company, while third-party coverage applies to losses suffered by others from a cyber event or incident, depending on their business relationship with that company.
Having a cyber insurance policy in place helps cover the financial losses that result from cyber-attacks. Furthermore, cyber-risk coverage helps with the costs associated with remediation, including payment for legal assistance, investigators, crisis communicators, and customer credits or refunds.
MAKE SURE YOU ARE PROTECTED
Because cyber liability insurance is relatively new and rapidly evolving, policies will vary widely from one provider to the next. We here at Hawley and Associates take pride in the strong relationships we’ve maintained with our insurance carriers and are steadfast in our mission to provide the right policy you need to guarantee you and your organization are well protected. We carefully review policy details to ensure it contains the necessary protections and provisions needed for each specific type of business. In addition, we evaluate whether policies provide protection against known and emerging cyber incidents and threat profiles.
The coronavirus pandemic has taken its toll on every industry in the world, which has opened unimaginable doors for cyber-criminals. Because of this, we have seen an uptick in cyber liability claims come across our desks from organizations of all sizes. This assures one common fear we all have – no one is safe from these attacks. Therefore, if your organization has inadequate cyber liability insurance coverage, or maybe you have none at all, please contact us for a free quote and to answer any questions you might have on how to better protect your mission.