- Posted by dalegroup
- On November 16, 2015
- 0 Comments
- CYBER INSURANCE, Cyber Threats, Dale Group Insurance
1. Breach Exposure
Issue: A major source of cyber loss comes from unauthorized corporate network breaches.
Solution: Companies need to first assess their vulnerabilities and then look into evaluating the right cyber and privacy liability plan based upon the results of those assessments. Cyber liability is associated with electronic systems, the Internet, network access and the network security systems of an organization. Privacy liability is associated with privacy issues, specifically the unauthorized dissemination of information or lack of protection for or release of PII such as credit card information and Social Security numbers.
Issue: Organized criminals accessing systems to cause financial or reputational damage, or both, on organizations.
Solution: Businesses should review their existing polices with their agents and brokers to make sure they have best-in-class cyber coverage for hacking events. The cyber policy should include coverage for: business interruption, loss of income, data restoration, brand/reputational management, defense and damages.
3. Social Engineering Exposures
Issue: Increasingly, social-engineering techniques are used to provoke employees to break normal security procedures, leading to a dramatic rise in cyber security incidents and resulting financial losses. Social engineering is a non-technical method of intrusion used by hackers that relies on human mistakes. In many instances, it involves tricking people into breaking normal security procedures, typically using innocuous subject lines from contacts or company-generated emails.
Solution: For this type of threat, it’s important to implement pre-and-post cyber incident best practices, and communicate cyber risk updates to employees in every area of your company, continually. Work with your agent or brokerage firm to ensure that your cyber policy contemplates Social Engineering attacks, including phishing and unauthorized electronic transfers
4. Cyber Extortion Risk
Issue: Cyber extortion, which involves a demand for money to avoid a cyber attack or release of confidential information, is on the rise. Cyber extortion is the fastest growing cyber threat, and organizations such as Domino’s, Nokia and Code Spaces, many universities, and several police departments across the country have fallen victim to it. As a result, companies and organizations are paying out millions of dollars to cybercriminals for the safe recovery of stolen data or to avoid network harm.
Solution: Organizations must understand the true breadth of cyber threats and secure risk management solutions that backstop your company’s IT and other departments’ risks. Your agent and broker can help you from risk assessment, to risk management, assuring the correct coverage for your organization and ensuring that you have the tools to effectively manage a cyber incident in case one occurs.