Keep posted, keep informed.
Internet programs are a vital component of a successful business operation. However, more online systems mean an increase in cybercriminal activity. These kinds of attacks result in potentially devastating consequences for the affected organizations. Breaches can negatively affect a company’s reputation and finances and create liability issues that increase lawsuit risks. Cyber liability insurance is crucial for anyone in business today and the first line of defense when planning to respond to a cyber attack.
Review Cyber Insurance Coverage Checklist
Clients should go over a coverage checklist to ensure protection from cybercrimes. Advise your customers which policies adequately safeguard their companies against internet security violations to cover things like:
- Notification costs
- Legal defense fees
- Government fines
- Investigation expenses
- Credit monitoring costs for customers
Secure Online Systems
When an internet breach occurs, your clients must first secure their programs and technology to prevent further privacy issues. The company may need to suspend compromised sections of the network, or the entire network, depending on the severity.
Perform Incident Response Procedures
Your clients should have guidelines that detail the steps team members must follow to handle a cybersecurity issue. Compromised companies must address many aspects to minimize the effects by assembling:
- Human resources to consult with affected employees
- Technical teams to investigate the problem
- Intellectual property experts to recover stolen information
- Public relations experts to communicate with customers
- Attorneys to advise your client of potential legal issues
Handle Public Relations
When your customers have consumer-facing operations, they must manage public relations following cybercriminal attacks. Protecting customer privacy is a critical component of running a business. When this personal data becomes compromised, patrons become upset. Your clients must communicate openly and honestly with their patrons as soon as possible following security incidents. Timely notifications, updated information, and suggested next steps help ease customer fears and unease.
Address Legal Obligations
Particular laws may govern a company’s notification requirements after a digital violation. Organizations must comply with regulations in response to internet threats. Some rules are universal, while others provide industry-specific guidance for the most at-risk industries, such as:
- Government agencies
- Health care facilities
- Small businesses
- Higher education institutions
- Energy companies
Security infringement laws outline the factors that constitute a breach, the notification requirements, the parties that must comply, the potential exemptions, and the description of personal information.
Utilize Cyber Liability Insurance
Regardless of how prepared your clients are, cybercriminals may successfully hack their systems, resulting in potential liability issues. Some risks companies may face include issues related to the following incidents:
- Ransomware infections that encrypt victim files and then demand a ransom amount to restore data
- Business identity theft that defrauds financial institutions, suppliers, and clients
- Stolen data breaches that put sensitive customer information at risk
- Cybercrimes that cause significant operational interruptions, resulting in financial loss
Cybersecurity issues are growing into a daily struggle for companies. Many businesses have inadequate defense systems in place, leaving data unprotected. Your clients must make awareness, prevention, and liability protection a priority for their daily operations to ensure information security.
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (855) 248-1480.