We have written on this blog many times about the importance of cyber liability insurance for businesses. Even with all of the articles and advice, the coverage still isn’t taken as seriously as other parts of the insurance portfolio.
The fact is, you may think that your business isn’t big enough to worry about cyber risk. After all, foreign hackers are more interested in big business. What would they want with your little company?
Just as there are large businesses, there are large hackers. And there are small hackers who would be happy to take down even a small business for the potential windfall.
The thing that might surprise you isn’t WHO wants to get your data, it’s HOW they are going to get it. The easiest way? Through your employees.
Accidental: The Lost/Stolen Laptop
Your employee stops at the airport bar to have a drink prior to a flight and leaves the laptop on the floor. By the time he realizes it is gone, he’s already in Poughkeepsie and the bag is in Orlando. Maybe it got turned into the lost and found, but more than likely it didn’t.
A lost or stolen laptop for most people and businesses may just be a nuisance. The cost to replace the laptop these days can be minimal, but what about any customer data that may be on the laptop, or proprietary information?
In the wrong hands that data can translate to stolen identities and thousands of dollars in lost revenue for your business. Calculate the cost to notify your customers, as well as the cost for credit monitoring and loss of reputation and what do you get? It’s not just a lost laptop anymore, it’s an expensive business crisis! In 2009 Intel calculated the cost of one lost laptop to be $49,246. Can your business afford that?
Accidental: The Incriminating Email
Ransomware attacks are the latest cyber hacking trend and they don’t appear to be going away anytime soon. The attack usually comes through email with a link that takes your employee to a site where the ransomware is downloaded. It takes over your computer network and locks everything up with the promise that your data will be released once you make a hefty payment to get it back.
Are your employees well-versed in how to protect their email accounts? Are they aware of how to tell a suspicious email from a real one? Do they know where to send suspicious emails, and what to do if they click a suspicious link? Are they allowed to access personal email on company computers? Take the time to review your email policy with your staff and the best ways to handle suspicious emails so that your servers don’t get hacked.
The costs of ransomware are not typically as great on the front-end, usually a few hundred or thousand dollars to release hijacked data. However, the costs of company downtime and notification to affected clients can add up quickly.
On Purpose: The Disgruntled Employee
A recent Dell End-User Security Survey found that nearly three out of every four employees are willing to share sensitive, confidential or regulated company information with outside sources. While the vast majority of these employees are doing so without realizing the impact to their employer, 3% of those surveyed said they would do so maliciously.
How satisfied are your employees with their working conditions and salaries? Do your employees feel like valued members of a team? Are there unresolved problems between managers and employees that should be addressed?
A 2015 SailPoint survey found that disgruntled employees would be willing to sell company passwords for as little as $150. That is a small amount of money for what could amount to a costly data breach for your company.
To protect your business, it is important to stress to employees the importance of confidential information and the preservation of both documents and company electronic devices during travel at home and abroad.
Even with the most stringent of security protocols, Hayes Brokers knows that data breaches can happen. We offer the most comprehensive Cyber Liability insurance policies to financially protect your business in the event of a data breach no matter who causes it, or how large it is. Call us today for a free, no-obligation quote.