Cyber attacks are in the news and on the rise. This spring, Pennsylvania and Maryland were among the eastern states affected by gas shortages. The shortages were brought on by panic buying after it was learned that Colonial Pipeline, which controls almost half of the fuel in the Eastern U.S., experienced a cyberattack that forced it to shut down its fuel distribution pipeline. In May, JBS, the world's largest meat supplier, was hit by a cybercrime that forced it to temporarily shut down all of its beef plants in the U.S. News reports are warning that ongoing shutdowns of JBS plants could mean higher meat prices.
Cyber attacks are in the news and on the rise. This spring, Pennsylvania and Maryland were among the eastern states affected by gas shortages. The shortages were brought on by panic buying after it was learned that Colonial Pipeline, which controls almost half of the fuel in the Eastern U.S., experienced a cyberattack that forced it to shut down its fuel distribution pipeline. In May, JBS, the world's largest meat supplier, was hit by a cybercrime that forced it to temporarily shut down all of its beef plants in the U.S. News reports are warning that ongoing shutdowns of JBS plants could mean higher meat prices.Cybercrime Magazine says "Cybercrime costs include damage and destruction of data, stolen money, lost productivity, theft of intellectual property, theft of personal and financial data, embezzlement, fraud, post-attack disruption to the normal course of business, forensic investigation, restoration and deletion of hacked data and systems, and reputational harm." In some cases, cybercrimes have taken away people's livelihoods, as plants are closed down or businesses fail after an attack.
And it's not just big companies that are falling victim to cyber attacks. Almost half of small businesses are subject to hacking attacks, according to Accenture, an international IT consulting firm. The reason hackers go after small businesses is simple. It's estimated that only 14% of small businesses have the proper software and protocols in place to defend themselves. Sadly, according to Cybercrime Magazine, 60% of small businesses close less than a year after being hacked due to financial loss and loss of customer trust.
Preventing Cyber Attacks on Your Small Business
"Employees and emails are a leading cause of data breaches for small businesses because they are a direct path into your systems," says the Small Business Administration (SBA). "Training employees on basic internet best practices can go a long way in preventing cyber attacks." The SBA says topics to cover include "spotting a phishing email, using good browsing practices, avoiding suspicious downloads, creating strong passwords, and protecting sensitive customer and vendor information." SBA recommends The Department of Homeland Security's "Stop. Think. Connect" campaign for training and other materials.
Additional ways to protect your company's data include limiting employees' access to sensitive information and conducting regular tests to determine where the company's risks and vulnerabilities are. Installing and regularly updating antivirus software is critical, as is having your company's hardware platform and infrastructure secure.
The Role of Cyber Insurance
If your company uses computers to send, receive, or store customer data or important company information such as sales and tax records, your data is at risk and your company has the potential to suffer severe losses from cybercrime. Cyber insurance, also known as cyber risk insurance or cyber liability insurance, covers financial losses resulting from data breaches and other cyber events—risks not typically included with traditional commercial general liability policies.
Depending on the policy, coverage is available for cyber extortion, data restoration, loss of income and expenses related to the attack (including investigative costs to determine how the attack occurred), and the cost of notifying customers whose data was affected.
Of course, because risk is high for this type of policy, underwriting standards are stringent. For example, most insurers require that companies have a Multi-Factor Authentication (MFA) protocol in place. MFAs require users to provide two or more verification factors to gain access to a company's online resources. One of our Keller-Brown Specialists can assist you in accessing your company's risks and choosing the right cyber insurance policy.
Free Quote on Cyber Insurance Coverage for Pennsylvania and Maryland Companies
The right software plus proper training and protocols can go a long way toward protecting your company from a cyberattack. If an attack does happen, the right cyber insurance policy can protect your company from risk and loss.
For a free quote on cyber insurance, contact an Insurance Specialist at Keller-Brown Insurance Services today. As an independent insurance company, we work hard to get you the right coverage at the right prices from top-rated insurance companies.