5 Reasons Why Transportation Companies Need Cyber Insurance
Trucking and Transportation Cyberattacks
Back in 2015, cyber hackers were able to breach Jeep Cherokees, Ford Escapes and the Toyota Prius. Hackers disabled the brakes, honked horns, jerked the seat belt, and took full command of the steering wheel while cars were in motion. Hackers are continuously finding new ways to breach the transportation industry.
In another example, a trucking company in El Paso, Texas watched their main server get electronically kidnapped for ransom. Cyber thieves started using the carrier’s identity to steal money from freight brokers. The company had to pay forensic costs, notification costs, and the extortion ransom to get back online.
As you can see, cyber insurance is extremely important in the transportation industry. Here are 5 reasons why transportation companies need cyber insurance.
Cybercriminals try to fraudulently steal money from organizations through unauthorized electronic fund transfers, phishing, cyber extortion, and identity theft. It can be as simple as a fraudster (pretending to be your bank or client) tricking one of your employees into transferring funds.
2. PRIVACY LIABILITY
Transportation companies collect all types of sensitive personally identifiable information (e.g. social security number, phone numbers, address, etc). Each piece of information has a value and, if lost, restoring the original identity of your employees and customers can come at a serious cost.
3. NOTIFICATION COSTS
In the event of a breach, a forensic investigator that can charge between $200-$500 per hour will assess your systems to see how much information has been lost or stolen. Once that number is quantified, your transportation company is legally liable to notify each individual affected in the data breach. The cost can be between $1-$3 dollars per individual in addition to legal fees.
4. BUSINESS INTERRUPTION + SYSTEM DAMAGE
Your systems are tracking logistical data, payment information, and sensitive client information for each job. When a hacker damages or takes down your systems during a breach, there’s a direct negative impact on your bottom line. This can include lost profits, external forensic consultants’ hourly billing fees, and any additional costs you incur to pay your employees.
5. CYBER THREATS & EXTORTION
After a data breach, your transportation company may notice a loss of current or future clients over the next 12-month period resulting in lost profits. This ultimately is due to a drop in your company’s reputation. A broad cyber policy will pick up the cost of those lost profits.
Contact the Assurance ‘A’ Team to learn more about adding this important coverage to your portfolio.
Evolve MGA – Cyber Insurance Specialists. Hackers Evolve, Your Cyber Policy Should Too.
- Do I Need Cyber Insurance for My Business?
- Two Minute Tuesday: Cyber Video
- Cyber E-Book
- Top 5 Cybersecurity Risks Every Business Leader Needs to Know Webinar Replay
ABOUT THE AUTHOR