Is it time to consider Cyber Liability Insurance?

Written by
Russell Greenwald

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As Ransomware attacks make a comeback, it’s time to make security a priority.

The past month has seen the continued acceleration of cybersecurity breaches to technology providers such as Blackbaud and Garmin – leaving the personal information of millions across the world at risk and millions of dollars spent on ransom, recovery, long outage periods, and customer distrust.

The culprits are hackers using ransomware – a type of malware that threatens to publish the victim’s private data or perpetually block access to it unless a ransom is paid. The recent attacks, especially those to Blackbaud and their clients, have demonstrated how susceptible some notable nonprofit organizations are to data breaches.

Insource has previously written about how you can best protect your organization from cyberattacks. To best protect your organization, it’s helpful to have an understanding of how hackers gain access to your system.  Typically they gain assess:

  • Using phishing emails to get user passwords.
  • Using brute-force attacks on servers that are externally exposed – remote desktop/terminal server, email servers, web servers, etc.
  • Trying credentials from another breach, as it’s possible your email and password were exposed to another breach. If those are the same credentials you use for other accounts, hackers can potentially access all of them.
  • By targeting systems and organizations that are using older systems or are slow to roll out updates.
  • By tricking a company’s staff into clicking on bad links that install ransomware on their system.

Not only is it time to take the necessary action steps to prevent the above, but you also need protection if those don’t prove to be enough.

What is Cyber Liability Insurance

While there are plenty of ways you can better prepare your organization from cyberattacks, the battle is never truly won. The nature of cybersecurity means that hackers will always be probing for new ways to break through and find sensitive information. As such, many businesses will see value in insurance designed to help minimize the impact of cyberattacks.

Cyber liability insurance is a policy specifically designed to protect your business from digital threats such as data breaches or malicious cyber hacks on work computer systems. While businesses are expected to have their own protocols and checks in place, having the right insurance will mean you aren’t left to your own devices in the aftermath of an attack.

What should your coverage include?

The needs of every organization are different so you will need to carefully consider what you need in your cyber liability insurance policy. Here are some key areas to look out for when comparing policies:

  • Interruption to your usual business during a ransomware attack.
  • Cost of computer forensic analysis to confirm a data breach and legal costs to manage said breach.
  • Cost of notifying data subjects and any regulatory body, along with providing credit monitoring services.
  • Cost of a ransom demand and specialists to handle ransom negotiations.
  • Cost to regain access to or restore your data assets from back-ups or other sources.
  • Loss of income and additional cost of working through interruption and damage to businesses’ reputation.
  • Cost to appoint a public relations consultant to protect your reputation and manage media.

Insource is dedicated to providing important cybersecurity updates through our blog and social channels, so be sure to follow us, and keep an eye out for new content and updates.

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If you’d like to discuss any of the above or would like us to help make sure your organization is as protected as it can be, get in touch with Insource today. We can help put systems in place that mitigate the risks associated with ransomware and many other potential threats.

Email us at insource@insourceservices.com, or call on (781) 235-1490.