Cyber Attacks: A Growing Business Interruption Threat
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As leaders in the industry, you know what you’re talking about when it comes to all things technology. Like many companies, you probably heard of data breaches and cyber attacks, but the threat didn’t seem real until the highly-publicized breach at one of America’s favorite stores – Target. If a large corporation can be held responsible for comprising the data of nearly 100 million customers, imagine what your liability could be in the event of a cyber attack.
The Target breach has executive teams across the country scrambling to ensure they have the right policies, protection and plan in place, for the sake of their clients, and themselves. Could your organization make it through after all of the interruption that comes with a breach? We’re talking loss of income and profits? Enter cyber liability coverage.
The majority of traditional commercial liability (CGL) policies will not cover business interruption losses due to a cyber event. Luckily, cyber liability coverage can fill that void.
Should your business be unable to perform normal business operations, a cyber liability policy can help pay for expenses related to an interruption. The coverage pays for:
- Lost income due to the event
- Profits that would have been earned had the event not occurred
- Operating expenses, such as utilities, that must be paid even though business temporarily ceased
- Rented or leased equipment
Cyber liability coverage also helps protect your business from the following events:
- Data breaches –including costs for customer notification, some legal costs and credit monitoring for those affected
- Damages to third-party systems – for example, if an infected email from your servers crashes the system of a customer or vendor
- Data or code loss due to a natural disaster or malicious activity – (physical destruction of equipment is covered under a different policy)
- Cyber extortion – including ransomeware which is malicious code installed into a computer on your network that prevents you from accessing it until a ransom is paid
Even though business interruptions due to cyber attacks are rare, they’re becoming far too common. Being unprepared could prohibit you from doing business as usual. Contact Assurance to find out how we can help you avoid becoming the next target.
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