Be in the know: cyber risk and online security

To say that cyber risks and hacking have become a big deal is not saying much at all. Risks from hacks and computer breaches are all over the news. We are glad to see this topic receiving greater recognition, but we are not entirely satisfied with the quality of discussion.

Instead of fear mongering about cyber, we want to see people become present to the risks and get proactive about them. It all boils down to if you think you’re covered – you’re most likely not covered – and no amount of fear will change that. In fact, people are more likely to freeze from fear and remain inactive.

Emerging threats

Cyber risk is particularly devious because it impacts every area of our lives. It’s not enough to have a conversation about a customer’s business as though that’s the only thing that can be hacked.

Today, there are so many ways of being hacked: through your smartphone or tablet, your desktop computer, WiFi networks, Internet of Things devices such as smart fridges, smart stoves and smart TVs.

In fact, businesses may start to really restrict smartphone use at work because it presents a cyber risk: hundreds of mobile devices located near and around sensitive company data is a breach waiting to happen.

Current solutions

Tackling cyber risks is challenging because they emerge and evolve much faster than the insurance industry has up to this point. For example, it took a good 20 years for Directors and Officers liability coverage to reach its current form, while cyber changes by the day.

And the solutions currently available to deal with cyber breaches are inadequate. For instance, some companies provide 12 months of credit monitoring following breaches, but hackers will return after the 12 months are up.

Many of our carriers offer first party protection, but once cyber breaches occur, they can rapidly exceed your coverage limits. In particular, business interruption can cost a lot. Further, the first item insurers remove from insurance policies is cyber coverage (in an attempt to create more economical products.)

Ensure business continuity

To deal with business interruption, create a business continuity plan. As part of this plan, you must know who to call in case of a breach or hack and how you will protect yourself, your customers and others in your network.

Given this situation, you can protect yourself only when you acknowledge the reality that you’re exposed to these risks. Then you must ask“how am I going to protect myself?” On our end, we are committed to educating ourselves about new threats, technologies and trends in order to guide you through these emerging threats.

How are you mitigating your cyber risks? Drop us a comment below and let’s compare notes.