Last year I wrote about the outbreak of ransomware “WannaCry”and the need for businesses to consider buying Cyber Insurance. Cyber Insurance is becoming more and more important.
When I have spoken to some people about cyber insurance, I hear objections such as “We don’t have an exposure” or “our IT people have got that covered.” But the reality is, if you answer yes to any of these three questions, you have some exposure
- Does your business use computers?
- Do you have Human beings working for you?
- Are you connected to the internet (phone or computer)?
The reality is viruses/ransomware continually get updated and scanners/protection involved are always playing catch up. So if you have a computer it stands the chance of infection. Human beings make mistakes. They click where they aren’t supposed to, the download software, open strange emails, etc. We all make mistakes. Add in internet connectivity and the exposure multiplies.
It’s easy enough to lose (or have stolen) a laptop or phone. If there is email on there then there is an exposure. As well, as much as you have faith in your IT people, they can’t have everything covered, because cyber crime is constantly changing.
Obviously the exposure is different for every company, and you have to weigh the pros and cons of not purchasing protection. Some businesses have significant exposures and will require a separate policy with broader coverage, while others will be ok with just a small endorsement to the commercial policy (provided their insurer offers cyber).
If your not sure about looking at your cyber exposure consider this report and video from CNET:
Some Alarming Statistics
Compartech.com recently issued a report on the 2016/17 Ransomware Facts and Statistics: Some Key stats to think about are:
- According to Cybersecurity Ventures, ransomware damages reached $5 billion in 2017. (Source: Cybersecurity Ventures)
- 70 percent of businesses paid to get their data back in 2016. (Source: IBM)
- Businesses lost around $8,500 per hour due to ransomware-induced downtime. (Source: Datto)
- Ransomware is costing businesses more than $75 billion per year. (Source: Datto)
- FedEx attributed a $300 million loss in its Q1 2017 earnings report to the NotPetya ransomware attack. The company reportedly did not have cybersecurity insurance. (Source: Reuters)
- NotPeyta’s losses could exceed $1 billion. (Source: eWeek)
So What Can Business Do:
In a perfect world we would wave our magic wand and everything will be alright, but we don’t live in a perfect world, so as business owners we need to take precautionary steps:
- Train your staff on Security Principles.
- Make Sure Anti-Virus software is updated.
- Block executibles from coming via email.
- Turn on Firewalls.
- Consider Internet Appliances to scan traffic on your Network such as a SonicWall or Barracuda Email Appliance.
- Remind your staff not to open unsolicited attachments.
- Ensure you have measures to wipe a lost phone or computer remotely.
- Ensure Mobile Devices are password protected.
- Secure your wifi.
- If you offer public WIFI – isolate it from your internal networks.
- Schedule your public WiFi to be turned off when you are not open.
- Don’t save personal info that you don’t need.
- Get Cyber Insurance.
The Big Sell
By all accounts ransomware is not going away. In fact it is getting more sophisticated and becoming a weapon in cyber warfare. As Business Owners we can’t take a chance of being infected. No matter how hard we try, you can never be 100% protected, and that why you need to consider cyber insurance. Its not just for the big guys anymore.
At Crosbie Job Insurance we have been insuring the businesses and people of Newfoundland and Labrador since the 1850s. It’s our job to ensure that you can sleep easy, because we’ve got you covered. If you want that piece of mind, take the time to contact one of Commercial Broker Representatives to review your policy and we can identify any gaps and review exposures in your current coverage. Our team will find the right policy and help you determine what your cyber exposure is.
At Crosbie Job Insurance you Can Sleep Easy …. We’ve Got you Covered!