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The Growing Threat of Cyberattack

Written by: Mike Schofield Posted: 9/13/2018
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The threat of cyberattack is becoming an increasing reality for companies of every size. In a recent survey of small and medium-sized businesses, over 60% had experienced a cyberattack within the previous year; however, only one in five described their organization's cybersecurity posture as effective.

This trend has helped to spur the creation of new insurance products designed to address cyber liability. Here are some coverage categories to look for in a cyber liability policy.

  • Security and Privacy Liability: Liability to employees and customers in the event of data theft
  • Data Recovery and Loss of Business Income: Denial-of-service attacks and system malfunction
  • Privacy Regulatory Defense and Penalties: Costs to comply with any regulatory action following a data breach
  • Crisis Management Costs: Costs of customer notification, support and credit-monitoring expenses
  • Data Extortion: Payment of "ransom monies" to secure the return of data

With the increasing availability of cyber liability insurance, it is important to review coverage options with your insurance agent to ensure that potential exposures are addressed.

About the Author

Mike Schofield is the President and CEO of Phoenix-based MiniCo Insurance Agency, a provider of specialty insurance products and publications for the self storage industry since 1974. MiniCo has partnered with London-based Lloyd’s to offer specialty property and deductible buy-back solutions for insuring the most challenging self storage properties. MiniCo Insurance Agency, LLC, is a member of the Aran Insurance Services Group. For more information, visit MiniCo.com.

 Source: 2017 State of Cybersecurity in Small & Medium-Sized Businesses, Ponemon Institute

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