Safeguard Your Business with Cyber Insurance
Posted on November 27, 2019
We have all read about different types of cyber-attacks and know criminals are always looking at new ways to strike. Many businesses have implemented security measures to help prevent attacks. Still, according to the National Association of Insurance Commissioners, Massachusetts is one of the top states for cyber-crime losses. These attacks have created an urgent need for a newer coverage, cyber insurance.
While cyber insurance has been around for many years, it has become one of the most popular new coverages as it has expanded to cover many different areas. While some Business owner policies have minimal coverage for certain cyber risks, you’ll need additional coverage to be well protected in the event of a cyber-attack or event. It is no longer a matter of having cyber insurance or not having it, but understanding your specific risks and which coverages you need to have as part of your insurance portfolio.
CYBER INSURANCE COVERAGES
A cyber security breach can inflict great harm on your company; however, there are several ways in which cyber insurance could help you cover the costs associated with an incident. The following coverages are available in different forms with different carriers and would help cover costs & expenses arising out of a cyber-attack.
If personal information about your clients or employees is accessed and stolen off your servers, you could be held liable for not securely protecting such sensitive data.
As with most liability situations, you will need to spend money on your defense.
PRIVACY NOTIFICATION EXPENSE
Most states (including Massachusetts) require you notify your clients in the event of an attack where their data was breached.
CRISIS MANAGEMENT EXPENSE
You may incur additional costs arising from having to deal with a disruptive and unexpected threat such as a cyber-attack.
BUSINESS INCOME INTERRUPTION OR EXTRA EXPENSE
A cyber-attack can shut your business down and affect profits or you may incur additional expenses to continue normal operations during or after an incident.
ELECTRONIC FUNDS TRANSFER / FRAUDULENT INSTRUCTION
When funds are erroneously transferred based on fraudulent instructions from a non-employee.
Fraudulent use of your phone system, tricking an employee to contact high rate phone numbers, or deceiving an employee to divulge financial or security information.
CONSEQUENTIAL REPUTATION LOSS
After an attack, there can be expenses associated with improving damaged caused to the company’s reputation.
VIEW OUR INFOGRAPHICS ON CYBER INSURANCE
- Cyber: The Greatest Threat
- How Coverage Responds
- How Do Breaches Occur
- Business Email Compromise
- What’s At Risk?
MASSACHUSETTS CYBER INSURANCE
To protect your Massachusetts business from the consequences of a cyber-attack, contact Aronson Insurance. We will analyze a number of factors to determine which type of cyber insurance policy will best suit your business needs. We’ve been serving businesses throughout Massachusetts since 1919, and proudly continue to protect our clients through the digital age with cyber insurance. Call us today at 781-444-3050 to schedule a consultation.