EPISODE

Cybersecurity insurance is a must-have in today’s business world

EPISODE DESCRIPTION

Cyber Liability insurance, also known as Cyber Security or Cyber Risk Insurance provides protection for a business related to all things internet. It insures against financial loss caused by ransomware extortion demands against a business and hackers gaining access to its computer systems and compromising customer data.

EPISODE TRANSCRIPT

The latest hottest topic with regards to insurances is cyber risk insurance. This relates to all matters of your doing business on the Internet. It involves people getting into your system, hacking into your system, locking up your data. 

It’s probably the worst situation you can be in as a business owner. I’ve literally had business owners call me in a panic. Their data is locked up. They’ve got very critical data on their systems. They can’t function. Their hundreds of clients can’t function. The world is coming to an end. I’ve seen claims for ransomware being in the hundreds of thousands of dollars, and these are serious people. They know what they want, and they know how to get it. 

A lot of business owners think that because they have a general liability policy that has $50,000 of cyber risk insurance slapped on to it they’ve got coverage. Well, guess what. In the event there’s a claim, they’ve got another story coming their way because that is not the right way to purchase cyber risk insurance. 

Good cyber risk insurance is going to be written on a standalone basis. It’s going to include remediation and negotiating expenses. It’s going to have money there for notification of your clients. It’s going to have money sitting there to pay for your loss of business income. It’s going to have sufficient limits to pay for the ransom so we can get your data unlocked. I’ve seen the FBI walk into a business and say we have people that can help you negotiate with these terrorists. The bill on that is $25,000 to start just to get a negotiation off the ground.

Plus on top of that you’ve got potentially hundreds of thousands of dollars of money you’re going to have to pay to get your data released even then. And data release is somewhat iffy. I’ve seen cases where they released the data and things have gone flawlessly. I’ve seen other cases where they have attempted to release the data, only to have the data be corrupted. 

What’s the best thing you can do? Best thing you can do is have a good defense. Get yourself a good tech firm that knows the ins and outs. They can not only do a pin test from the outside, they can also get inside of your systems. They can penetrate through your firewalls and find out where your problems are. That’s your first line of defense. The last line of defense is a good insurance plan, and that’s where we can help you. 

My name is Gerald McMichael. You know me. And now you know a little bit more about insurance.

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