What Every Mover Should Know about Cyber Liability Insurance
Why are Cyberattacks on the Rise?
According to Cybersecurity Ventures, a company was attacked every 11 seconds in 2021. Cybercrime, which includes everything from theft or embezzlement to data hacking and destruction, is up 600% because of the pandemic.
Verizon Chief Information Security Officer Nasrin Rezai said in a CBS News report, "For employees accustomed to working from the office, shifting to a work-from-home model as a result of COVID-19 required them to integrate their personal lives. During the same period of transition and disruption, threat actors shifted their techniques to target employees through COVID-themed phishing and social engineering campaigns to capitalize on the stress and anxiety of the pandemic situation.”
Common Cyberattack Scenarios Include:
- Ransomware: data, website or other critical resources are held hostage by hackers who demand payment to release it.
- Social engineering: a malicious actor tricks you into sharing sensitive information or authorizing transactions by pretending to be someone else or creating a false profile.
- Data breach: personally identifiable information is lost or stolen.
Large or Small – Your Company is at Risk
More than half of all cyberattacks are committed against small-to-midsized businesses (SMBs), and 60 percent of them go out of business within six months of falling victim to a data breach or hack. According to a 2021 report from Hiscox, the average reported cyberattack cost was about $25,600 among businesses with fewer than 250 employees.
The ransomware business is extremely profitable to hackers, with losses estimated at $20 billion in 2021. This problem is not going away!
Does my Moving Company Need a Cyber Liability Policy?
If your business stores its own financial data or personal customer data online or on computers including, phone, credit card and Social Security numbers, you should purchase a cyber liability policy. Employees' lost cell phones can grant access to customer information.
First-party Cyber Coverage
First-party coverage provides financial assistance to help an insured business with recovery costs. It generally covers:
- Investigation of the incident
- Risk assessment of future cyber incidents
- Lost revenue due to business interruption
- Ransomware attack payments based on coverage limits
Policies commonly cover the cost of notifying customers about the cyber incident and providing them with anti-fraud services such as credit monitoring.
Third-party Cyber Coverage
Third-party coverage protects your clients if someone within your organization makes a mistake that results in a cyber breach or attack that harms your client. It generally covers:
- Attorney and court fees associated with legal proceedings
- Settlements and court judgments
- Regulatory fines for noncompliance
The Best Offense is a Good Defense
More than 90% of cyberattacks infiltrate an organization via email. Your employees and IT infrastructure are the first line of defense against a ransomware attack. Mitigate potential breaches by implementing stringent multi-factor authentication protocols and enhanced security awareness training. Develop a rigorous security patch process, back data up frequently and regularly test your defense and backup systems. And ensure your company is sufficiently covered by cyber liability insurance.