Mitigating the Business Interruptions and Risks of a Cyberattack

Mitigating Business Interruptions & Risks of a Cyberattack | Property & Casualty

When you think about what usually causes a business interruption, natural disasters such as fireshurricanes and floods probably come to mind first. While they are indeed the main reason for an interruption, another cause is quickly moving up the ranks – cyberattacks. As businesses continue to rely on computers and digital storage of essential data, cyberattacks will continue to be a potential exposure.

How a Cyberattack Causes Business Interruption

Hackers, thieves and other unauthorized individuals have become adept at exploiting weaknesses in a business’ computer system, whether through traditional hacking methods or social engineering. There are several types of attacks that could completely cripple your ability to perform normal business activities, including:

  • Malicious code that renders your website unusable
  • Distributed Denial of Service (DDoS) attacks that make your website inaccessible to employees and customers
  • Viruses, worms or other code that deletes critical information on a business’ hard drives and other hardware

It’s quite easy to see how these events can leave your company scrambling to do business. Unfortunately, many businesses don’t have the expertise or manpower available to detect the problem, much less fix it, which only increases the length of an interruption.

Third-Party Interruptions 

You can still be affected by a cyberattack even if your business isn’t the direct target. Imagine what would happen if one of your vendors suffered an attack, resulting in a complete shutdown of its warehouse or website. Such an event could have a profound effect on your operations, which would trickle down to your customers who rely on your products or services.

Prevent a Cyberattack Business Interruption

A common saying in the cybersecurity world is, “It’s not if you’ll be a victim of a data breach but when.” While 100% protection is impossible, you can help lower your chance of business interruption due to a cyberattack by implementing these strategies:

  • Create a formal, documented risk management plan that addresses the scope, roles, responsibilities, compliance criteria and methodology for performing cyber risk assessments. This plan should include a characterization of all systems used at the organization based on their functions, the data they store, their processes and their importance to the organization.
  • Make sure all firewalls and routers are secure and kept up to date.
  • Implement a cybersecurity policy that educates employees about the dangers of computer intrusions and how to prevent them.
  • Download and install software updates for your operating systems and applications as they become available.
  • Implement a strict password policy and have employees change system passwords every 90 days.
  • Limit employee access to company data and information
  • Limit authority to install software.
  • Make sure you are covered by a cyber liability insurance policy.

How Cyber Liability Coverage Help?

Most traditional commercial general liability (CGL) policies will not cover business interruption losses due to cybercrime. Luckily, cyber liability coverage can fill that void.

Should your business be unable to perform normal business operations, a cyber liability policy can help pay for expenses related to an interruption. The coverage typically pays for:

  • Lost income due to the event
  • Profits that would have been earned had the event not occurred
  • Operating expenses, such as utilities, that must be paid even though business temporarily ceased
  • Rented or leased replacement equipment

Additional Cyber Liability Coverage Protection

  • Data breaches, including costs for customer notification, some legal costs and credit monitoring for those affected
  • Damages to third-party systems, if, for example, an infected email from your servers crashes the system of a customer or vendor
  • Data or code loss or malicious activity (physical destruction of equipment is covered under a different policy)
  • Cyber extortion, including ransomware, which is malicious code installed into a computer on your network that prevents you from accessing it until a ransom is paid

We’re Here to Help with Cybersecurity

Being unprepared for a business interruption due to a cyberattack could prohibit you from doing business as usual. Connect with a member of our team today to find out how we can help you avoid a business interruption due to a cyberattack.

Mitigating Business Interruptions & Risks of a Cyberattack | Property & Casualtyhttps://www.cbiz.com/Portals/0/Images/cyberattack risks_1.jpg?ver=J634giqPajYzbUKfv8ozYA%3d%3d~/Portals/0/PackFlashItemImages/WebReady/cyberattack risks.jpgWith deeper reliance on computers for nearly all businesses, the threat of a cyberattack is an ever looming risk. Here are tips to help mitigate business interruptions from cyberattacks....2020-10-19T18:21:58-05:00

When you think about what usually causes a business interruption, natural disasters such as fires, hurricanes and floods probably come to mind first.

Cyber & Information SecurityProperty & Casualty InsuranceYes