A $2.1 Billion Problem – Cyber Liability!

Katelyn Noschese Cyber, Risk Management

In Insurance, there are always new and important emerging risks. In today’s world, more and more of our businesses are moving away from paper and forming electronic processes. With that, there is a lot of exposure for individuals, but more so businesses. A recent Chubb Insurance survey stated that 43% of Data Breaches involve Small Businesses. According to the United States Government, Cyber Liability is a $2.1 Billion problem! So, what is cyber liability? What is social engineering? What does this mean? How do I know if I am properly covered? All very common questions.

A recent Chubb Insurance survey stated that 43% of Data Breaches involve Small Businesses.
Cyber Liability covers financial loss from data breaches such as virus attacks and cyber extortion. The largest portion of claims that we see today within cyber liability is social engineering. Social engineering is coverage for the phishing scams that seem to be happening far too often. This is where someone wires funds to a third party who is impersonating an employee or vendor. For example, an employee receives an email from an address that looks exactly like their boss and is requested to wire money. This employee feels like they need to follow orders, so they wire the funds. The funds they are wiring are going to a fake vendor. Fraudsters try to exploit the human nature of teams helping each other. The employee does not know the fraudster isn’t who they said they are.

What to do: get a cyber policy that includes Social Engineering! Every company does this differently. It could be endorsed onto cyber policies or another option. What not to do: assume that “throw in” coverages on your typical business owners policy covers you for all cyber related items.

Most people think that Cyber is only a coverage needed for businesses, but personal coverage is becoming popular as well.

Knowing you are properly covered, personally or business wise, begins by working with Deland, Gibson to identify your highest risks and work to instill proper coverage before something happens. Reach out to Deland, Gibson by calling 781-237-1515!