New Risks in a Changing World
Commerce runs on information, and a company’s most important commercial assets often aren’t inventory or real property, but data. Whenever business information is stored or transferred, it can be corrupted or obtained by undesirable third-parties. Your business is not immune to cyber risk, as every company, no matter how large or small, has data of a sensitive, propriety, or legally protected nature.
What are Cyber Risks?
Cyber risk has been defined as any risk of financial loss, disruption, or damage due to the failure of an organization’s technology systems. If that definition sounds broad, that’s because it is; virtually any information technology claims can fall under this category, and a shockingly large percentage are not covered under other kinds of insurance coverage.
Consider this handful of situations that could constitute a cyber breach for your business, noting that the provided list is far from exhaustive:
- Infiltration of a physical, online credit card, or other payment processing system
- The loss or theft of an employee laptop, cellphone, or tablet containing proprietary information
- Accessing company files via cloud computing using an unsecured network
- Obvious passwords for company email or social media
Like with other kinds of commercial insurance, Cyber Insurance is meant to keep a sometimes unavoidable circumstance from destroying your business.
Reduce the Risk of a Breach
In addition to cyber insurance, there are several things that you can do right now to decrease your chances of falling victim to a cyber attack. These include:
- Unique passwords. Consider using different passwords to keep potential breaches localized.
- Data backup. Regularly backup offsite and make sure the location is secure.
- Cloud usage. Know where your cloud-based data is stored.
- Antivirus protection. Keep your antivirus updated and installed on all computers.
Discover more preventative measures against cyber risk and ensure that your business has a sufficient response plan in place.
Cyber Insurance as Part of an Enterprise Risk Management Program
Cyber risks are significant and should be taken seriously by all businesses. It’s unlikely that a business could withstand an attack from a devoted criminal organization, and even in the absence of professional criminals, the risk of professional error and employee misconduct is hard to fully mitigate. As is often the case with other forms of risk, insurance serves as the ultimate backup.
Cyber insurance is one of the newest products offered by the commercial insurance industry, with development still in its infancy. If you, like many other business owners, are confused about Cyber Insurance, don’t worry. You can learn more about what Cyber Insurance is, how it works, and why it’s important for your business here.
The danger of cyber threats is very real. Call 973.770.6700 today, or download our free eBook to discover how you can mitigate cyber risks and protect your business.