Why any size business can face cyber risks and key risk mitigation tips
In our highly digitalized world, no business is immune to cyber risks. From multinational corporations to sole proprietorships, the threat of cyber attacks looms large.
As technology advances, cyber risks grow. No business is immune to the threat of cyber attacks – let our industry expertise, preferred brokers, and tailored insurance coverage help protect your company from digital disaster.
In the digital age, it becomes necessary to broaden your business coverage to protect your bottom line and your reputation. Cyber insurance is designed to support your business if computer networks are breached, causing information to be stolen or ransomed, business operations to be interrupted or computer systems to be corrupted. Cyber risks can also make your business more vulnerable to lawsuits from customers or to fines from regulators.
Cyber risk coverage can involve things like:
Cyber insurance doesn’t stop at the event, because consequences can stretch on for much longer. Aside from regaining access or recovering lost information, your business may need to deal with things like network repair, legal claims, and public relations services to help restore your reputation and rebuild trust among customers. Getting things back on track can take days, weeks, or months.
If you handle information to facilitate, record, and process transactions, this data is likely vulnerable. A business doesn’t need to be rooted in the tech sphere to be prone to cyber attacks – any business is exposed to cyber risk.
Even if you’re not handling or transmitting information electronically, your business could still be at risk of an information breach in the event of loss of paper files.
Hacks of big companies tend to make the headlines, but small and mid-size businesses are equally prone to cyber attacks.
Cyber incidents impact companies across all industries, and they can take a variety of avenues. Through malicious emails, cyber criminals can try accessing your system, and once they’re in, they can unleash malware, ransomware, and other malicious programs to cause trouble.
All it takes is one targeted attack to sideline your business. Even if you manage to get back up and running quickly, expect to face costly consequences.
In contrast to cryptojacking (where criminals mine a device for cryptocurrency), formjacking plants malicious code on a retail website to grab the credit card details of shoppers.
Small and large companies alike can be prime targets, and you might be surprised at the amount at risk. Since this type of cyber attack is a serious threat for both businesses and consumers, people on either side of a transaction need to be wary.
You have a responsibility to deal with a cyber attack quickly. If you fail to comply with Canada’s mandatory privacy breach reporting and record keeping laws, you could face fines.
Here are some circumstances where you might find cyber insurance useful:
Consider a mid-sized manufacturing business that relies on multiple computer systems to organize their metal parts manufacturing operations. A cyber criminal managed to introduce malware to all the systems, forcing the company’s IT department to spend days recovering electronic data from corrupted storage devices and repairing the computer systems to continue operations.
Each day that the business is closed is a day of lost income. One malware attack could lead to an expensive loss encompassing cost of forensic investigation, legal expenses, business income loss, and even litigation from customers.
Cyber attacks come in all sorts of forms. If a small professional services company was hit with a denial of service (DoS) attack, a method which hackers use to make a machine or network resource unavailable to the user or owner, they may have to shut down operations for a while for repairs. In this case, the work related to fixing the software would be covered by cyber risk insurance.
Keeping your guard up can be a full-time job, but we can help ease the burden with smart and focused cyber support. From ransomware to data stolen from lost devices, we’ve got you covered with first-party* and third-party** cyber coverage, plus protection for the data stored on your system or on another system – no matter where in the world it’s located. Need a special solution? Our standard solution will suit most small and mid-size businesses, but a larger operation might require our tailored custom solutions for businesses like these.
Northbridge Insurance Cyber Risk policyholders can make use of Cyber Assist services, provided by leading cyber service provider, CyberScout. Cyber Assist provides consultation on proactive measures customers can take to protect their data, as well as reactive assistance in the event of a privacy breach or cyber incident.
Some of the services include:
An insurance broker can be your greatest asset when it comes to finding the right insurance policy. A broker brings a wealth of insurance expertise, product knowledge, and personalized service to the table, working to protect your company and your peace of mind.
Northbridge believes in the power of strong partnerships. Our preferred network of reputable brokers can help craft a comprehensive policy that’s suited to your unique business.
Risk is a part of life – risk management should be, too. It can be challenging to make space for risk mitigation in your daily routine, but this is a corner that shouldn’t be cut. After all, even if you have the right insurance coverage, preventing a loss is always better than recovering from one.
Risk management solutions can be as simple as improving the layout of your workspace, or as involved as launching a company-wide training program. Our Risk Services experts can help with both. In fact, we’ve made access to risk management expertise a fundamental feature in every commercial insurance policy.
In our highly digitalized world, no business is immune to cyber risks. From multinational corporations to sole proprietorships, the threat of cyber attacks looms large.
While there’s a lot of media attention around major data breaches that impact multinational companies, hospitals, and universities, small and mid-sized businesses are also prone
The reality of modern business includes the ever present possibility of cyberattacks. Being prepared is crucial, especially for small businesses. Smaller operations can become prime
*First-party cyber coverage: covers consequences that impact your business operations, including expenses related to incident response, data recovery, bricking, business interruption, and extortion.
**Third-party cyber coverage: covers consequences that impact a third-party (such as customers), including costs related to cyber and privacy liability, media liability, regulatory expenses and PCI (payment card) assessments.