Have you ever heard of commercial Cyber liability insurance? This type of business insurance is vital for all influencers. Most systems today are automated or uploaded on the Internet. Many influencers are now using cloud or other IT services to store their password as well as other important business tools and information.
It means influencers are now getting their lives online and become more vulnerable to identity theft, hackers stealing their information and passwords, hacking their instagram accounts for blackmailing and so on.
There are increasing cases of data breaches and other cybercrimes. As our technology progresses and our lives go more and more online, people (hackers) with bad intentions or criminals do so too. People can use technology for good as well as evil. Fortunately, insurance companies found a way to financially cover us from cybercrime attack losses.
Is Cyber Insurance Included in Business Insurance Policies?
Business insurance covers your business as a whole, for example, bodily injuries and property damage that were caused to your area of commercial operations. It consists of coverages of many smaller commercial areas of operation. For example, bobtail insurance.
Cyber insurance is also one of these types of smaller commercial operation areas of coverage. It covers data breach involving personally identifiable information such as a customer’s account number, credit card, social security number, health records, and driver’s license number. You just have to make sure that your business insurance policy covers what’s important for you to cover with your cyber liability insurance.
Most people don’t care about identity theft just because it did not happen to them yet. Let me just tell you that many people have lost so much because of identity theft—things like bank accounts, credit cards, properties, etc. Cybercriminals can use your personal information and impersonate you so they could steal those things.
Prevention is one thing, and security is another. Study shows that when you enter your information online, there’s always a risk that somebody may steal it. Even small businesses can be affected by cyberattacks. And your company’s reputation may be put into trouble.
How does Cyber Insurance help you with these kinds of problems?
- Notify your customers. If someone breached your systems, Cyber Insurance could help you explain and rectify your customers’ situation.
- Restoration of personal information.
- Recover compromised data. Insurance will do its best to recover the lost data of the company.
- Repair computer system damage. Cyber attacks don’t only mean stealing data. Criminals can also destroy your systems.
Since the COVID-19 pandemic, most people have lost their business, and some have migrated to online selling. Cyber threat continues to increase each year. Now that most business systems are online, the possibility of data breaches increases.
It is not a simple matter because a cyber threat can destroy your company’s reputation. People will think that your company does not care if a cyber attack occurs within your business. Cyber insurance will surely help with increasing the security of your company.
Samples of Cyber-threats
Dridex Malware attack. This is a computer virus that can steal your password, banking information, etc., and be used for suspicious or fraudulent activities. This kind of cyber threat has been affecting people since 2014. It infects your systems by a phishing email and other malware too.
Romance Cyber threats. It is a fraudulent activity that uses dating sites to take advantage of people looking for partners. Criminals use pictures of other people and deceive people by thinking it’s them. Then when you are close enough, they will ask for favors such as money and your info.
Emotet Malware attack. It is a trojan virus that thrives on simple passwords. If your password is not strong enough, you will be exposed to this cyber attack. The virus can steal data and load other malware on your system.
Government, Small Business, Corporations can be exposed to these cyber threats. Imagine, the Dridex malware attacked the U.S. public government even though they have one of the most substantial Cyber Security worldwide. Obtaining a Cyber Insurance would be smart for business owners as it can happen to anyone.
Billions of funds have been lost because of cybercrimes. According to the Insurance Information Institute, identity theft and fraud reports from 2015-2019 significantly increased. The top five of identity theft are credit card fraud (new account), miscellaneous identity theft, mobile telephone (new account), personal or business loan, and lease or auto loan.
We are on our way to the modern era right now. We are not sure what will happen to the future, but we should always be prepared. During the pandemic, we knew that the Internet is a powerful technology that we could use. Schools, businesses, etc., were conducted online. We continued with our everyday life online, and that is thanks to our technology.
Now since we are in our period where everything can be done online, we should also protect each other by getting one of these services. If you have a small business, you may not see the worth of Cyber Insurance, but there will be a time when you grow your business, and you will need this service.
Published May 29th, 2021