Ransomware has become a substantial business risk in 2021. Major attacks have been disrupting businesses, from pipelines to meat packaging. No matter the size or industry, companies need to think about steps to take to secure themselves against cyber criminals.
Some of the key actions that businesses can take include:
- Implementing a security awareness program
- Cyber monitoring
- Reducing Risk with tightened security measures
- Cybersecurity Insurance
The first three measures can help prevent you from becoming the next headline. But Cybersecurity Insurance can help you in case the unthinkable happens.
Does Your Business Need Cyber Insurance?
The US Chamber of Commerce recently looked at factors that you should consider when evaluating if you need cyber insurance and what type to get.
According to the Chamber, any organization that uses technology and collects data is vulnerable to a cyberattack that do lasting damage to both customers and employees. Cyber insurance can help businesses recover costs after a security breach.
The Chamber goes on to list six specific ways that cyber insurance agents can help prevent attacks:
- Recovering lost data and devices that were targeted
- Helping you comply with notification requirements and informing your customers
- Informing the authorities of the attack so they can start an investigation
- Determining the extent of the breach and how to fix security holes
- Covering the cost of business disruption, revenue loss and equipment damage
- Covering costs toward legal fees and public relations expenses
Types of Cyber Insurance
Farris Insurance can help you determine the type of cyber insurance that’s right for you.
Some policies cover your financial loss due to a data breach. Other policies cover the financial losses of third parties, including your customers, partners, suppliers, vendors, and others.
Other policies are a hybrid of the two types.
Evaluating your company’s specific level of risk is key. How much sensitive information about your clients do you collect and how is it stored? Does it include payment, financial or health information? Do your employees use their own devices at work? How much does your business rely on confidentiality?
Finally, make sure you understand what your insurance does and does not cover, just like with health or car insurance.
Arkansas Creates Cyber Advisory Committee
In June 2021, Arkansas Governor Asa Hutchinson announced that he will create an advisory council to prepare the state for cyberattacks that are becoming more prevalent. The Arkansas Cyber Advisory Council will aim to identify and manage the risk of cyberattacks and enhance the state’s response to threats and attacks, according to Talk Business and Politics.
According to Governor Hutchinson, many industries such as agriculture are ripe for attack. The governor noted that as farmers and ranchers move more of their business to computers, the risk of cyberattacks on our food supply grows. The Advisory Council has been tasked with helping to strengthen defenses against high-tech attacks.
The 12 council appointees include Alan McClain, the commissioner of the Arkansas Insurance Department.
Insurance Companies Create New Entity
Seven major insurance companies in 2021 have formed a new entity to address the rise of cyber attacks and insurance claims. Leading cyber insurers AIG, AXIS, Beazley, Chubb, The Hartford, Liberty Mutual Insurance and Travelers will pool their data and expertise to help mitigate cyber risk across the insurance industry, according to Insurance Journal.
The new company is called CyberAcuView. It will compile and analyze cyber-related data, in part to help provide better value and service to policyholders. One of the goals of the new venture will be to educate policyholders on loss prevention strategies.
Farris Insurance Can Help You With Cyber Insurance
If you’re looking to get Cyber Insurance protection, Farris Insurance can help. We serve businesses and people across Northwest Arkansas, including Springdale, Fayetteville, Bentonville, Rogers, and throughout Benton and Washington Counties. Contact us today at (479) 756 – 6330.