What exactly is cyber insurance? Why do you need it? What does it cover? These are just a few of the topics I would like to go over today.
A quick overview of cyber insurance is that it covers technological breaches and other types of cyberattacks on your computer system(s). It may not be able to stop a breach from happening, but it will be there to help you be prepared for and will respond when a breach occurs. A cyber breach can be anything from a credit card skimmer to a denial of service attack. Cyber insurance will respond to many different occurrences, including lost or stolen laptops or smartphones, hackers, phishing, social engineering, and many more.
Now, you may be thinking, I’m not in the tech industry, why does this apply to me? Say, for instance, your accountant is issued a company laptop and takes it home to finish up some payables before the end of the month and he/she misplaces the computer. Your company would then be liable for any personally identifying information that was exposed and potentially used against any clients you have.
One example of a data breach that happened to a non-tech industry this year is the Marriott data breach that happened on March 31, 2020. According to news resources, hackers were able to obtain login information of two employees and use those credentials to siphon thousands of loyalty program members’ names, birthdates, phone numbers, travel information, and loyalty program information. While not the same as directly stealing clients’ money, the information they took could easily be used to get further information about the client.
Another of the largest breaches of 2020 happened to a non-tech company – Magellan Health. In April 2020, 365,000 patients were affected by a cyberattack on the company. The malware was installed to steal employee login credentials and then used to steal personal information, employee ID numbers, W-2 information, social security numbers, and tax ID numbers.
Again, cyber insurance might not have been able to completely prevent these attacks from occurring; cyber will be there to help mitigate the effects and help the company and their clients recover from the breach.
If you have any questions about cyber insurance and how it can help you and your business, please reach out. We’re more than happy to help!