Understanding cyber insurance

What do you need to understand about cyber insurance when it comes to protecting your customers, clients, and business against cyber and ransomware attacks? In the tenth episode of our Sharing Knowledge Series, our host and chief lending officer, Kevin Vonderau, is joined by Lacy Rex, vice president, cyber strategic leader at Oswald, and Fred Franks, chief strategy officer at FIT Technologies. Together, they discuss current cyber threat trends and the importance of cyber insurance.

Cyber threat trends

As we continue to operate in a more digital world, including digital banking, understand the current and evolving nature of cyber threats trends and how they can impact your business information and system is significant. Current attack methods include, but are not limited to:

  • Nation-state attacks are organized breaches on infrastructures, militaries, or businesses ranging from high-tech takeovers to email phishing scams. The perpetrators are difficult to identify but can include sovereign entities, sanctioned governments, and cyber gangs.
  • Hacktivism infiltrates a system to bring attention to a cause rather than extortion. The motives are case by case and with the intent to damage a businesses’ public image and private information. 
  • Ransomware is a data breach with an extortion request attached. These attacks often cause businesses to cease until ransom demands have been met. 
  • Data exfiltration is a breach of an internal system to extract and send sensitive information externally. It can be executed by a cyber extortionist with malware or accidentally via an employee.

Precautions to avoid data breaches

According to cybersecurity experts, these are a few steps that you can take to reduce your risk of cyber-attacks. 

  • Train and keep employees informed on phishing scams and what to do if they suspect one. The more knowledge that your entire workforce consumes about compromising data, the stronger the integrity of your security. Your data is only as secure as the weakest member of your team.
  • Implement multi-factor authentication on devices that have access to sensitive data. This method requires confirmation from a secondary source which makes data breaches more difficult. 
  • Have employees use password generators. The use of password generators creates unique passwords that are random, encrypted, and secure. 
  • Invest in IT and operational technologies that provide updated protection against attacks.
  • Consider hiring and implementing a professional cybersecurity solution such as FIT Technologies.

Watch and listen to our Sharing Knowledge Series episode for additional information on cybersecurity and protecting your business, here. As a trusted partner we prioritize your financial security. Our treasury management business solutions provide enhanced security on all your transactions. Learn more about becoming a protected partner. 

Cyber insurance coverage

Protecting your business from losses connected to a cyber-attack becomes more critical as companies move further into digital territory. As Lacy points out, the implementation of cloud-based software is an example of how information can end up compromised; the more avenues that pirates can access, the more that information is at risk of being hacked.

Cyber insurance can help keep your business whole after a cyber interruption including income loss, cyber extortion, and restoration of data. It’s important to know what type of cyber liability insurance is right for your business. Below is a list of coverage options to consider including in your cyber insurance policy: 

  • Liability protection
  • First party coverage
    • Disaster recovery
    • Cyber extortion
    • Event Management 
    • Crisis management costs
    • Digital forensics
  • Third party coverage
    • Data held by third parties or vendors.
    • Data breaches involving theft of personal information.
    • Data breaches of your network.
  • Breach response coach

Finding the right cyber insurance

When looking for carriers, be sure that you’re considering options that have a specialization in cyber liability insurance, including our featured guests on Episode 10, Oswald Companies or our parent company Westfield Insurance. Assess if their coverage will:

  • Defend you in a lawsuit or regulatory investigation?
  • Provide 24/7 support in the event of a breach?
  • Provide coverage beyond that of other coverage that you carry?

It’s important to find an agent that you trust to discuss planning and renewals. The right agent will help you prepare, understand your controls, budget for business risk, invest in your protection, and implement a tailored plan.

To learn more about cyber insurance and detailed mitigation steps to consider if you don’t have a cyber liability policy, watch or listen to the latest episode of our video and podcast Sharing Knowledge Series.