Cyber Liability Insurance 101

Cyber Insurance provides financial relief from costs associated with hack attacks, data breaches and system failures. 

There are over 1000 Cyber attacks reported to the FBI each day.  Every business has a cyber exposure. A ransomware attack and wire transfer fraud are the two most common cyber insurance claims.  

Ransomware Attack

Hackers get businesses to download Ransomware viruses by tricking employees into clicking on phishing emails or exploiting software security vulnerabilities. Once downloaded, the Ransomware’s program is designed to lock up data, including backups, and even cloud data. The hacker then will  typically demand a crypto-currency payment to unlock the data within a time window or destroy all the data. This means they will stop your computer programs from working, which will stop your business from operating.  They will demand payment to allow your systems to work again. 

Wire Transfer Attack

Hackers manipulate senior executive officers, employees, or clients with the intention of tricking the business or their client into wiring money into the hacker’s bank account. Successful unauthorized Funds Transfer Fraud hacking methods consist of stealing login credentials via phishing or key-logging malware, financial data manipulation, and corporate identity theft. Any business that is transferring money regularly is a target.  

Nearly all successful hack attacks target human error.  Mostly done through clicking on a phishing email link that installs the malware onto your computer system.  

Financial Costs Associated with Being Hacked

Extorted for money to get your damaged computer system to work again.  For a wire transfer fraud the potential loss of the transferred funds. Business Interruption from not being able to perform your business operation.  Reconstruction of your data or computer system. The cost of notifying your customers of the breach or attack.  Cost to replace damaged computer hardware.  Hiring a potential data breach attorney.  These are some of the more common costly expenses.  

According to the FBI from 2018 to 2020 there has been a 915% increase in phishing attacks.  If you do not have cyber insurance, we can offer you a free quote.  All we need is your business name, website address and your annual revenue.  That’s it.  If you have Cyber Insurance and would like a comparison and a review of your coverage, we can provide that for you as well. Cyber Insurance is a very important coverage that your business needs.   

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Are you ready to save time, aggravation, and money? The team at Ameriguard Insurance Agency is here and ready to make the process as painless as possible. We look forward to meeting you!

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