What to Know About Cyber Insurance

Recently, the City of Atlanta was crippled by a ransomware attack that The New York Times called “one of the most sustained and consequential cyberattacks ever mounted against a major American city.” The city’s computer systems were held hostage after being hacked by a third party who locked them out and demanded money in exchange for re-access to the systems.

As cyberattacks become more widespread, cybersecurity continues to be a priority for businesses and organizations of all types and sizes. In fact, Cybersecurity Ventures predicts cybercrime damages will cost the world $6 trillion annually by 2021. Cyberattacks are also the fastest-growing crime in the U.S., and they are only increasing in size, sophistication and cost. Barkly Endpoint Security notes that the total cost of a successful cyberattack is over $5 million, or $301 per employee.

What does a cyber policy cover?

With governments’, businesses’ and other organizations’ increased reliance on computer networks, it’s essential to protect your assets with a cyber policy and be prepared in the event of an attack. A cyber policy helps cover the costs of a data security breach for identity protection solutions, public relations, legal fees, liability and more depending on your coverage plan.

INSUREtrust Representative, Will Tschetter, said that public relations expenses are a vital component in a cyber policy because they help the insured provide reassuring information that instills security and safety in the public’s eye. Overall, Tschetter noted, having a cyber security carrier manage the aftermath of a cyberattack helps ensure the situation is handled correctly and quickly, which is crucial to restore confidence in your organization if it is victimized by a cyberattack.

How to respond in the event of a cyberattack:

If you have purchased a cyber policy, it’s best to notify your insurance agency or cyber carrier immediately to resolve the claim. Your carrier’s vendors and experts will be dedicated to resolving the claim with your best interests in mind, while the goal of the FBI or Homeland Security is to catch the criminal, Tschetter points out. All in all, immediate notification of claims activity is essential when resolving cyberattack claims effectively and efficiently.

While we can learn from previous attacks, like Atlanta’s, preventing future attacks will remain a challenge. Protecting your organization with a cyber insurance policy is a safe choice.  At J.R. Prewitt & Associates, we can help you find coverage that is right for your company.