Until internet usage became widely available to the public, no business owner would have considered the possibility of a digital attack on their enterprise. Over the past decade, however, cybercriminals have found that it is far easier to stage an attack on small- to mid-sized firms than to infiltrate major corporations with in-house IT teams, dedicated to providing system security services around the clock. Enter cyber security insurance. At Grillo & Associates, we advise any business that uses technology or collects data to contact our team to discuss their cyber insurance options. (This is especially true for Manhattan-based firms with exponentially higher cybercrime risk than elsewhere in the TriState. Be sure to speak with our associates about NYC cyber insurance protection.) The hard facts are that every business is at risk, and the average cost to rectify a data breach is about $7 million. What this means to many regional businesses is that without a dedicated cybersecurity insurance policy, they are not likely to have adequate coverage in the wake of a data breach.
Cyber insurance can help your business remain in business after a cybersecurity breach. Coverages can include business disruption, revenue loss, equipment damages, legal fees, public relations expenses, even forensic analyses, and expenses that are associated with legally mandated notifications following a breach. Here are some of the other ways that cyber security insurance can provide coverage:
Data Losses Due to a Security Breach
Grillo & Associates advises that in addition to having a cyber security insurance policy, regardless of where it is stored- in-house, offsite, or in a vendor’s cloud- you take steps to safeguard data. First, understand and be aware of all the outlets where your company and client-related data are stored. Create and test policies and procedures that concern data collection and storage, and implement best practices. This way, should a breach occur, your cyber insurance policy will cover breach notifications, remediation expenses, and expenses incurred cooperating with any regulatory investigations.
Compromised, Lost, or Stolen Company Devices
Many who work remotely or are permitted to leave the company premises with company-owned laptops, cell phones, and other mobile devices may work in public places or have these devices stolen while off-premises. Either way, there is a great potential for exposing private or confidential customer data. Institute a policy that limits which level of staffers have access to what types of data to ensure only authorized staffers have access to confidential files, use effective passwords and have these updated regularly, if possible, store only encrypted data, and be sure to comply with the dual authentication mandates now required by federal law. Depending on the type of data your business uses, Grillo & Associates may advise that you consider a policy that includes network and information security liability coverage
Forensics
Should your business experience a cyber security breach, computer forensics teams will determine its extent and if confidential client information has been compromised. A cyber insurance policy will reimburse the insured, subject to applicable retention policies, and pay for potential business losses and additional expenses incurred during the period of business restoration.
Notification
By law, customers and clients must be notified of a breach, which can average $1.72 million. (This amount is considerably higher for Manhattan-based firms, underscoring the need for NYC cyber insurance to protect their businesses.) As part of a comprehensive cyber security insurance policy, any firm can obtain the right amount of coverage needed to cover the cost of this important and required step in the post-breach business restoration plan.
Grillo & Associates advises every business in the greater New York area to consider this vital coverage and to contact our team to discuss your requirements today. Call now to schedule your confidential consultation.
