In the last post we discussed using employee education to protect against phishing scams and cyber crimes. This post is about using cyber liability insurance and business interruption insurance to protect against cyber crimes. Crime policies, included with general business policies, use to cover losses from most criminal scams. However, the insurance industry has changed in recent years and now businesses are expected to carry cyber liability insurance to protect against cyber crimes.
To explain the difference between a scam covered by a crime policy versus a cyber liability policy we can use the mail. If a scammer tricks an employee into wiring money using snail mail then the crime policy will cover the losses. If the same scam is executed but email is used instead of snail mail then the crime policy excludes the loss.
Businesses are more accessible today than ever before for scammers. This accessibility allows scammers to take advantage of software to attack businesses constantly with little human power required. The scammers are trying to gain access to data so that they can trick a human into wiring money or encrypt the data and hold the business hostage.
Cyber liability insurance is designed to cover the losses from things like ransomware attacks, phishing scams, social engineering scams and other online attacks. Business owners can use comprehensive cyber liability coverage with a business interruption policy to ensure that when an attack happens they are covered for both the losses and the downtime the business suffers as a result of the attack.
Most insurance carriers include some sort of cyber coverage, but like anything they are not all the same. Business owners should work with their insurance agent and IT support company to find a policy that works for them. Every business is different so the risks are different and the amount of coverage needed varies. Working to identify and quantify these risks will allow the business to locate and purchase the insurance that will keep it safe when an attack occurs.
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