According to PurpleSec, a U.S. based IT security firm, cybercrime has increased by 600% in 2020. This is partly due to sophisticated COVID-19 related phishing attacks. So if 2020 is almost over, doesn't that mean attacks should decline in 2021? Highly unlikely. More than ever, cybercriminals better understand our network vulnerabilities.
So how do companies protect their business from cyber-related lawsuits? Through preventative measures and quality Cyber Liability coverage. These two pillars of cybersecurity will benefit any organization looking to weather the online cyber storm of 2021.
Cyber Crime Prevention for Businesses
There are several ways to protect an organization from cybercrime. Small and mid-size companies may want to consider partnering with a Managed Services Provider (MSP) to host and maintain their network. This puts a lot of the IT security burden in the hands of the MSP. For enterprise-level organizations, a very knowledgeable IT team should be designed. Consideration should be made for a Chief Information Officer (CIO) or Chief Technology Officer (CTO) with a background in mitigating or recovering from a cyber event.
Another crucial aspect of cybercrime prevention is educating employees on how to stay vigilant. According to PurpleSec, 92% of malware is delivered by email. A click-happy employee that clicks on a phishing scam could take down an entire network. Platforms like KnowBe4 and ESET help administrators set up quick training modules to educate staff on spotting a phishing scam and other cybersecurity vulnerabilities.
Obtaining the Right Cyber Liability Coverage
Cyber Liability insurance is not a one-size-fits-all product. Some organizations may need a substantial level of coverage. Others may have limited assets and only require a basic policy.
Generally, the following should be included in a basic Cyber Liability policy: Business Interruption, systems restoration, public relations costs, forensic analysis, and the cost of defense, settlement and judgment. For enterprise-level businesses, the following enhanced endorsements may prove beneficial: hardware replacement (bricking), reward payments, regulatory fines and penalties (GDPR), full media liability, forensic accounting, PCI assessments, and more.
Coverage limits for Cyber Liability can range from $100,000 to $10M, depending on company size and exposures. Exposures may include: employees using mobile devices on a secure network, servers managed on-site, ACH transfers or billing activities, or storing Patient Health Information (PHI).
If you're preparing your office for the new year, we invite you to discuss Cyber Liability with every new and existing commercial policyholder. Not only will this bolster your revenue, but it will also provide financial safety to your insureds - which ultimately benefits everyone. To start the conversation, download our infographic, highlighting six useful Cyber Liability coverages for every business.