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Reduce the Threat of Cyber Risks to your Business

All businesses face cyber threats. Almost every company has some kind of network, database or online presence that puts it at risk for a cyber breach. Consider the following:

  • Your customers' personal and financial information sits on your servers or at a data store, daring hackers to attack. 
  • A company-owned laptop or Blackberry that is lost or stolen can result in the theft of customer information. 
  • The average cost of a data breach is $214 per compromised customer record (Source:  Ponemon Institute). 

While all businesses face the risk of a cyber breach, many don't fully understand the threat and its severity. According to recent surveys, cyber crime now ranks as one of the top four economic crimes facing companies today yet roughly three-quarters of U.S.-based companies do not have cyber risk or network security insurance.  (Sources:  PricewaterhouseCoopers; Towers Watson & Co.)

The good news is that cyber risk insurance can easily be tailored to the needs of your business.  Whether your main concern is network security, privacy, crisis management, technology errors and omissions, or media and intellectual property issues, your HUB broker can identify the right insurance coverage and/or risk management strategy to address these issues.   In addition, cyber insurance is affordable, especially compared to the damage a cyber breach can do to your company's finances and reputation. 

To get a better understanding of the risks facing your business, HUB international offers an online Data Breach Cost Calculator on its public website. The calculator can help you understand the potential cost of a data breach to your business.

If you already have cyber insurance coverage, remember that you also need data protection protocols and breach preparation strategies. Combining cyber risk insurance with sound, internal data protection safeguards will ensure optimal protection.

Here are some tips from HUB Risk Services on how to create an effective cyber risk mitigation and response plan that will reduce your company's exposure:

  • Identify key people who are responsible for risk management, information technology, legal notifications, media inquiries, public statements, and communication with business partners, vendors, and law enforcement.
  • Regularly test your plan and walk through possible scenarios to identify weaknesses and make improvements.  
  • Maintain a data inventory - where it's located, who controls it and whether it is encrypted. Knowing what data is lost will help guide your response in the event of a data breach. If you are unable to determine the scope of the breach, you must operate and respond from the perspective of a worst-case scenario, which entails notifying regulatory agencies, customers, partners and vendors.
  • Train employees on the proper procedures for handling data or transporting equipment offsite. According to NetDiligence, more than one-quarter of data breach claims were attributed to lost equipment and other employee errors. 

 HUB also offers clients a number of powerful tools to help reduce the risks associated with cyber losses:

  eRisk HUB Portal

  • Provides tools and resources to help you better understand your company's exposures, establish a response plan and minimize the effects of a breach.  
  • Available to HUB International clients with cyber liability coverage who meet certain guidelines.
  • Key features include an incident roadmap, news center, learning center, risk manager tools, and eRisk resources.

    Remember, large organizations are not the only ones at risk. Verizon reports that 50% of cyber attacks occurred in companies with fewer than 1,000 employees while companies with 11 to 100 employees sustained 26% of all attacks. Smaller businesses can be more vulnerable than larger ones as they often use third-party hosting and information processing that can be an entry point for the attacks. 

    If you have not already done so, contact your HUB advisor today and start developing a strategy to protect your business from cyber risks.