Cyber risk: Are you protected?

A fraudulent email opened by one of your employees allows malware to grind your entire operation to a halt. A hacker steals your company data. An undetected data breach leaks confidential client information.

Your company can easily fall victim to any number of cyber risks. Are you properly protected? Can you afford the financial impact of a cyberattack? 

You may be asking yourself what exactly “data” is. Even your client’s name in your system consists of a vital piece of data. And let’s be honest: Most companies today don’t just have the names of their clients in their database. These also contain the address, postal code, email, birthdate, and even banking information for clients—precisely the kind of data hackers go searching for.  

The good news is that cyber risk insurance lets you transfer these risks and have the full support of a group of experts. They can help you fully address any financial and legal damage as well as any damage to your reputation resulting from fraud and cyberattacks. 

The importance of cyber risk insurance 

For companies today, cyber risk insurance is a key component of a healthy business management plan. This kind of insurance not only protects your own data, it also ensures your clients’ information is kept safe, too. Plus it can protect your workforce should your system be hacked. 

Note that it is far easier to deal with a cyberattack when your company already has the right insurance and action plan in place. 

5 reasons your company should have cyber risk insurance 

  1. No other type of insurance exists to cover cyberattacks.
  2. It allows your company to entrust any incident to your insurer and their team of experts. 
  3. Your company can continue to function as normal if ever an incident occurs. 
  4. This insurance covers the costs associated with managing a cyberattack. 
  5. Your company will be able to maintain its reputation and good standing. 

An ounce of prevention

There are different types of cyber risk insurance available to you. The right coverage will protect both you and your clients, and support you as you manage the impact of a cyberattack.

Regardless, it’s always a good idea to be prepared for a cyberattack. Remember that it’s in your best interests to have a solid plan already in place beforehand. Here are a few questions you can ask yourself to help ensure your company is prepared in the event of a cyberattack:

  • Will you need to contact a computer expert to help get rid of any malware?
  • Will you require a communications, PR, or crisis management firm to help safeguard your company’s reputation?
  • Do you foresee a drop in usage by your clients following a cyberattack?
  • What are the costs and application methods associated with informing your clients of any breach? 

We all know how important it is to be covered for unexpected events like a fire. In the digital age, however, your data can just as easily go up in flames following a cyberattack—which can be equally as damaging for your company. Why take the risk of being uninsured for that kind of damage, as well? 

Special collaboration with Michaël Proulx, Commercial Damage Insurance broker at AccèsConseil.