No business, municipality, nor organization is immune to cyber crime. It is estimated that 50% of all small and midsized business have suffered at least one cyber attack in the past 12 months. According to CNBC, cyber crime costs the global economy over $450 billion and 2 billion personal records were stolen in the U.S. in 2016.
This being the case, it’s no wonder that cyber insurance is seeing sharp growth.
“Over the past 12 months, the number of insurance carriers offering cyber insurance has dramatically increased,” says Stewart Levin, CPCU, of Hallberg Commercial Insurers, Inc., in Oak Brook, Ill. “We have also seen a sharp decline in cyber insurance premiums, thus making it more affordable for businesses of any size to protect themselves from the substantial costs of a cyber attack.”
Cyber insurance policies cover liability arising from website media content, as well as property exposures from: business interruption, data loss/destruction, computer fraud, funds transfer loss, cyber extortion, and public relations assistance in managing and maintaining the company brand and customer good will.
Levin says it is important for businesses to work with a licensed and experienced insurance professional who takes the time to understand the business’s needs. “The goal is to set up the right coverage based on any potential cyber liability exposures,” Levin says.
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He recommends sharing tips like these with businesses to help prevent a cyber attack:
1. Develop a fully operational plan to deal with an online attack. This plan should include a robust procedure for off-site system data back up and periodically testing the back up for validity.
2. Purchase and maintain security systems or build-in security measures to protect the business.
3. Employee education is key. Teach all employees how to avoid unwittingly exposing network data during a hack. Human error can leave a company open to additional risk. Additionally, recruit people trained to prevent attacks.
4. Purchase a cyber insurance policy. While this is an additional insurance expense, it is a fraction of the costs of defending, notifying, monitoring, investigating, and managing the cyber liability crisis.
About Hallberg Commercial Insurors, Inc.: Hallberg Commercial Insurors, Inc. was founded in 1986 to provide commercial insurance and risk management consultation to businesses in the Chicagoland area. The company offers a complete portfolio of insurance products for business insurance, group health and benefits, personal insurance, and financial services.