When’s the last time you thought about the data you store on your computers? Most modern businesses now store customer information and payment methods online or on computers and terminals that are connected to the Internet. The bad news is that if your system is connected to the Internet, or if your business has an online portion, you’re at risk for a data breach. Those data breaches, on average, cost $221 per data record stolen. If you don’t have cyber attack insurance, you may have to pay that entire amount from your business funds. Could your business survive that kind of expense?
Understanding How Data Breaches Occur
Most data breaches are completely random. They can occur via an easy to guess password, backdoors that are built into the software by computer technicians for the purpose of troubleshooting and software repairs, vulnerabilities in the software or application, and having too many employees with advanced administrative permissions.
Breaches can be the result of someone who works at the company. This hypothetical individual may deliberately take customer information home for nefarious purposes, or they may simply lose their work phone, laptop, or tablet. Data breaches may also happen if a computer is affected by a virus, malware or ransomware.
Data breaches have also occurred due to physical altering of the equipment and unauthorized people being granted access to the building or property. To prevent physical attacks and thefts of data, make sure you remind your employees to be vigilant and report any unusual or suspicious behavior.
Understanding How Cyber Attack Insurance Protects Your Business
Cyber insurance covers issues that arise after a data breach, including legal expenses. It is designed to help you with the financial liability that occurs when customer and/or employee information is stolen.
1. Customer Notification
If your business experiences a data breach, the cyber attack coverage provides customer notification about the breach. This is usually accomplished via email. The email explains the types of data stolen and if any steps are needed in order for the customer to help protect themselves.
2. Restoring Identities
Cyber attack coverage helps restore the identities of customers who were affected by the breach. This may include helping the customers put a fraud alert on their credit reports, and providing free credit monitoring. It may also include helping the customer restore their credit history.
3. Recovering Data
This helps the company determine what data was lost. It also aids in recovering data that was damaged by a virus, malware, or ransomware.
4. Repairing Computers
If computers or computer systems were damaged in the breach, cyber-attack insurance helps repair those machines and systems so that they are safe, secure, and functional.
Why You Need Cyber Attack Coverage
If your business already has liability insurance, you may be wondering if it protects against data breaches. The truth is that it is not. Liability insurance is designed to protect you in case a customer gets hurt at your physical location or is injured by a product or service. Cyber attack coverage is often deliberately excluded.
Steps Business Should Take After a Data Breach
In addition to purchasing cyber-attack coverage, businesses should have a plan of action in place to deal with breaches. According to the FTC, businesses should:
- Notify the data security breach team
- Immediately identify and secure the areas that were breached
- Consider hiring a data forensics’ team to determine what data was stolen and when
- Notify the legal team of the data breach
- Remove all breached computers and equipment from the Internet
- Interview the individuals who discovered the breach in order to find out more information
- Notify affected customers
- Repair and secure network systems and computers
Getting Cyber Attack Coverage from Fearnow
Our agents at Fearnow can help you get the cyber attack coverage you need to help financially protect your business from the problems that occur when data has been stolen. This can include paying for legal expenses and lawsuits that arise from the data breach, notifying customers of the breach and helping those who were affected restore their identities and their credit history.
To learn more about cyber attack coverage as well as other types of business insurance, including commercial car insurance, business liability and umbrella coverage, give us a call at 813-689-8878. Our agents can answer all your questions and provide you with insurance quotes.