For those of you who have been in the mix with us for a while, you know the drill. For those of you just joining us for the first time – Welcome!
Every month we try to get information to you in the form of a short Newsletter that is pertinent to your business. Our goal is to try to provide relevant information that you can use within your business. Since January comes with a slew of new goals and expectations, now is a great time to talk about Cyber Insurance. While it’s not a sexy title, even by insurance standards, it is quickly becoming one of our most prominent claims.
What is interesting is we have seen the target victim change over the last few years. Originally, the claims were targeting large clients, with a lot of employees, and lots of computers. However, now days the claims are trending more towards smaller companies, and in particular, companies that do not use computers on a regular basis, such as contracting trades and restaurants. Why the sudden switch? According to the claims data, an average trade contractor does not believe they need cyber insurance since a lot of their interaction is personal. However, that same trade contractor may only have a handful of computers housing all of their client’s data and information.
Since hackers know this, they also know that this is an easier account to hack as opposed to a large company that may have a designated in-house person who is responsible for protecting the computers. In addition, hackers know that the security software on 2-3 computers at a restaurant may not be updated as quickly or to the extent that a larger corporations’ computers might be. Yet, the data contained in both of these scenarios can yield millions of dollars. In addition, most hackers require payment in the form of Crypto Currency. This now means that the local plumber and his spouse must figure out how to convert dollars to crypto currency to pay the ransom for the requested data breach – Sheesh.
To put it into perspective, the problem has become so rampant that the state of New York has made Cyber insurance compulsory, meaning, you have to have it. As one Cyber Expert said on a recent conference call, “Cyber is the new form of train and bank robberies”. The thieves are looking for smaller more secluded banks to rob, as they know they don’t have the measures in place to protect the data. If you are one of our clients that deals with the government, you also know that the government is now wanting to see cyber policies in place, when bidding for a job. The good thing is the insurance companies now have complete departments full of staff members who are working to provide insurance policies that can cover the ever-changing cyber threats that we are now facing. If you do not have a Cyber Liability policy in place, please reach out to us and let us know.
Want a free THREAT analysis of your website that shows its strengths and weaknesses from a Cyber standpoint? Email us today and we can send you the information!
P.S. – For further information, check out the Cyber Liability article below.
https://www.insurancejournal.com/news/national/2024/01/02/753570.htm
