6 Important Things Cyber Risk Insurance Covers
No matter how big or small your company is, you can benefit from cyber risk insurance. Hackers don’t care if you’re a multinational corporation or running your company out of your bedroom – they’ll consider you a potential target.
If your corporate website doesn’t have proper security protection, it’s a point of attack for hackers. If you or your employees post details online about your organization or personnel, you could be at risk of phishing attacks. That’s just one of the risks you face – which is why cyber risk insurance is so important.
In this article, you’ll learn about:
- Some of the most common risks associated with a cyber attack.
- What kind of cyber attacks could affect you and your business.
- What cyber risk insurance covers.
At Archway Insurance, we sell a wide variety of insurance, including cyber risk insurance, to protect you against fallout from cyber attacks. We’re here to make sure you have peace of mind when it comes to cyber risk insurance.
1. What risks are associated with a cyber attack?
The risks associated with a cyber attack can vary depending on what kind of technology you use, how you’re using it and the type of data you collect.
Three of the most common risks associated with a cyber attack are:
- Operational disruption. A cyber attack can be more than just having some of your client’s data stolen or exposed – it can actually disrupt your entire operation. If a cyber attack is severe enough, it could take down your entire network. This can have a big impact on your ability to generate revenue.
- Inability to access systems or critical data. This type of risk is generally associated with ransomware extortion, a kind of cyber attack that has been in the news a lot lately. With a ransomware extortion cyber attack, malware is loaded onto your system which then denies you access to your entire system or critical data until you pay a ransom. As with an operational disruption, this can impact your company’s ability to function which means lost revenue.
- Accidentally revealing critical information. This type of cyber attack, called social engineering, is less direct than the first two listed but it can still be devastating. With social engineering, you or an employee are tricked into revealing important or private company information to someone you think is a legitimate actor but is actually a hacker. If this kind of breach is made public, your clients could lose faith in your company, causing them to end their contracts with you.
What kind of cyber attacks could affect me and my business?
Hackers have a variety of ways to attack your organization which is why cyber risk insurance is so important. As vigilant as you and your employees are, it can be challenging to protect yourself against every type of cyber attack.
These are some of the most common types of cyber attacks:
- Phishing is one of the most widespread cyber attacks today. Even private citizens constantly have to be careful to avoid falling prey to phishing. With phishing, a hacker pretends to represent a trusted organization (such as Amazon or even the government) to trick a user into clicking on a fake link or opening a harmful attachment.
- Ransomware is another common type of cyber attack.. With ransomware cyber attacks, a software program (usually accidentally downloaded after visiting a compromised website or phishing link) encrypts files to prevent legitimate users from accessing them. The hackers then demand payment for their safe recovery.
- With spoofing, cybercriminals impersonate another person or a device. They then try to attack network hosts, implant malware or steal information.
- A brute force attack is when a hacker tries to decode encrypted data by using numerous password combinations as quickly as possible.
- A denial of service attack happens when a hacker deliberately sends more traffic to a website than it was designed to handle. Legitimate visitors can then no longer access the site.
- Malware attacks can do a variety of damage. With malware, harmful software takes over a computer and then can do everything from monitoring a user’s actions to stealing confidential information.
What does cyber risk insurance cover?
While this all seems scary, the good news is that cyber risk insurance is here to help protect you from the fallout of cyber risk attacks. With cyber risk insurance from Archway Insurance, you can get coverage for the following:
- Liability claims such as legal fees, fines and penalties if your business is found liable for security breaches or loss of privacy.
- Crisis management gives you financial resources to help communicate security breaches or network interruptions to clients and deal with any PR fallout from these issues.
- Restoring or recreating data and management systems damaged during a hack or breach.
- Customer notification, support and monitoring of data breaches or loss.
- Business interruption coverage to help you recover lost profits incurred throughout a breach.
- Cyber extortion coverage to cover the costs of a ransom demand.
Why should I buy cyber risk insurance from Archway Insurance?
Our number one goal for insurance is to make sure our clients have financial protection from the unexpected.t. With cyber risk insurance, we want to protect your business from fallout – be it reputational or loss of income – from a cyber attack.
Even if you take every possible precaution, there’s still a chance you’ll be a victim of a cyber attack. This is why cyber risk insurance exists – to help give you peace of mind and financial protection.
Our brokers can help you choose from the different kinds of cyber risk insurance available to ensure you’re getting the cyber risk insurance that suits you and your business.
Cyber risk insurance is critical for any business
Cyber attacks can take many forms. That’s why cyber risk insurance exists – to help protect businesses from the fallout of a cyber attack. At Archway Insurance, we’ll customize your cyber risk insurance to suit your needs.
To learn more about cyber risk insurance, call Archway Insurance at 1-833-536-0529 or contact us online. We’re here for all your insurance needs in New Brunswick, Nova Scotia, and PEI!