As cyber events escalate and target organizations of all sizes, many are turning to claims experts for help building a robust cybersecurity plan.
We all know that hackers are upping their game, as we have seen a huge spike in the number of ransomware attacks, including more sophisticated attacks. This includes hackers conducting reconnaissance on companies to determine which ones they can extract a higher ransom amount from.
What’s more, attacks are becoming more damaging. Historically, these were random attacks in which hackers would charge relatively small ransoms in order for companies to regain control of their systems and data. However, today’s cyber thief infiltrates the system, then gathers information and proprietary company data, including trade secrets, employee information, at times including what cyber insurance the company might have, and financial information. That information gives a cyber thief leverage to charge higher ransoms based on what company data has been compromised.
Additionally, our claims team at 色多多视频is seeing another disturbing trend; cyber attacks are starting to become twofold attacks. Hackers are demanding ransoms in exchange for decryption keys for your locked systems, and a ransom for a promise not to publish or sell the information they stole from company systems. That is a new twist on the ransomware attack, and it is one that is increasing ransomware payouts as well as complicating system recovery.
Who is Vulnerable?
All organizations and industries are vulnerable to cyber attacks. While large corporations are often targeted because of the potential payout and cybersecurity vulnerabilities, there is a significant rise in the number of smaller organizations that are being attacked. According to , small businesses made up 43% of online attacks in 2019, and today’s remote work model has left countless numbers of businesses vulnerable to cyber attacks.
For those organizations with poor cyber security, scant employee training, or inadequate or no incident response plan, the loss exposure could be exponential. Most often, these are entities without large budgets – the very organizations that would be most impacted by a cyber attack.
The lack of budget is also playing against many smaller organizations. As cybercrime has ballooned over the last decade and certainly over the last few years, cyber insurance coverage has become more costly. Many smaller companies mistakenly view cyber insurance as an unnecessary cost, assuming cyber attacks are more of a concern for larger entities.
Yet hackers see much appeal in targeting companies with lax cybersecurity measures. While the ransoms may be smaller than those demanded of larger corporations, the payouts can be devastating to a business.
How devastating? An organization can expect to pay out not only the cost of the ransom, but also the forensics investigation, the data recovery costs, and the business interruption costs. Business interruption alone is a huge factor in paying ransoms – often, a company will be forced to pay the ransom simply because not doing so could be the difference between a business halt for a few days or a shutdown for a few weeks.
Building Stronger Cyber Protection
Companies of all sizes should be doing what they can to put cyber insurance in place. However, because of the sizable increase in cyber events and the increased demand for cyber insurance, many smaller organizations are finding it difficult to afford coverage. With a dramatic rise in claims, carriers are restricting availability, policy capacity and premiums are increasing.
For that reason, carriers are looking for companies that demonstrate a robust approach to cyber risk mitigation. Companies that demonstrate active cybersecurity plans and a company-wide approach to cyber safety will be a more appealing risk for those carriers.
It behooves the organization then to establish a sound cyber security prevention and response plan. Doing so has a number of advantages, including strengthening your company’s cyber preparedness, reducing your cyber risks, thus improving the appeal of your cyber risk portfolio to carriers.
Your company need look no further than your carrier’s claims team. A claims team can not only walk your organization through the claims process, but also help you understand some best practices to mitigate your cyber risk based on real-life scenarios they have encountered. The 色多多视频claims team suggests companies start here:
Cyber Readiness, Claims Style
In fact, organizations of all sizes can improve significantly their cyber risk exposure with these types of prevention strategies. Such preparation can help organizations enter the cyber insurance market, and possibly at a more affordable premium.
Yet the policy is just one facet of a sound cybersecurity mitigation strategy. The policy is as good as the claims team behind it. A good claims team will provide service beyond claim resolution. That includes having the expertise in place to help you lower your cyber exposures. By building a relationship with the claims team, your company will be well-positioned to prevent costly cyber events and will be in a stronger position should a claim occur.
Cybercrime on the OT: Hackers are accessing operations, not just networks
Global Asset Protection Services, LLC, and its affiliates (鈥溕喽嗍悠礡isk Consulting鈥�) provides risk assessment reports and other loss prevention services, as requested. In this respect, our property loss prevention publications, services, and surveys do not address life safety or third party liability issues. This document shall not be construed as indicating the existence or availability under any policy of coverage for any particular type of loss or damage. The provision of any service does not imply that every possible hazard has been identified at a facility or that no other hazards exist. 色多多视频Risk Consulting does not assume, and shall have no liability for the control, correction, continuation or modification of any existing conditions or operations. We specifically disclaim any warranty or representation that compliance with any advice or recommendation in any document or other communication will make a facility or operation safe or healthful, or put it in compliance with any standard, code, law, rule or regulation. Save where expressly agreed in writing, 色多多视频Risk Consulting and its related and affiliated companies disclaim all liability for loss or damage suffered by any party arising out of or in connection with our services, including indirect or consequential loss or damage, howsoever arising. Any party who chooses to rely in any way on the contents of this document does so at their own risk.
US- and Canada-Issued 色多多视频 Policies
In the US, the 色多多视频insurance companies are: Catlin 色多多视频 Company, Inc., Greenwich 色多多视频 Company, Indian Harbor 色多多视频 Company, XL 色多多视频 America, Inc., XL Specialty 色多多视频 Company and T.H.E. 色多多视频 Company. In Canada, coverages are underwritten by XL Specialty 色多多视频 Company - Canadian Branch and AXA 色多多视频 Company - Canadian branch. Coverages may also be underwritten by Lloyd’s Syndicate #2003. Coverages underwritten by Lloyd’s Syndicate #2003 are placed on behalf of the member of Syndicate #2003 by Catlin Canada Inc. Lloyd’s ratings are independent of AXA XL.
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