Cyber Security Insurance on the Rise

Cyber Security Insurance on the Rise

Technology has become the foundation for the way businesses interact with each other. With the rise in technology, cybercrimes have increased as well. Being a victim of cybercrime is a headache, to say the least. Cyberattacks can cost companies and governments thousands of dollars in major ransoms and/or legal fees. Not only do cyberattacks affect a company financially, but they can also affect a company’s reputation, especially if an attack puts customers’ and employees’ information at risk. In fact, reports have shown that upwards of 55% of small businesses have fallen victim to cybercrime, and another 53% have suffered from multiple. Staying up-to-date with the world’s evolving technology can be difficult; however, companies must remain vigilant in preventing any liability that may be floating in cyberspace.

Common types of cyberattacks

Malware – Malicious software (spyware, ransomware, viruses, worms) that penetrates a vulnerability in a network, typically when a user clicks a suspicious link or email attachment. Malware can block access to certain areas of a network, covertly attain information from a user, or disrupt certain components and deem a system inoperable.

Phishing – Phishing is sending fraudulent communications with the goal of obtaining sensitive information (credit card info, social security numbers, etc.) from a user.

Man-in-the-middle – Man-in-the-middle attacks, or eavesdropping attacks, occur when an attacker inserts themselves in a two-party transaction. The most common point of entry for MitM attacks is unsecured Wi-Fi networks or malware software.

Denial-of-service – A denial-of-service attack floods a network or server to the point where the bandwidth is completely exhausted and the systems cannot process simple, legitimate requests.

SQL Injection – A Structured Query Language (SQL) injection occurs when malicious code is inserted into a server that uses SQL and forces the server to reveal sensitive information.

Zero-day Exploit – A zero-day exploit occurs when a network vulnerability is publicized but not a solution or patch just yet. Attackers will target the weakness during this window of time.

What is Cyber-Security Insurance?

Cybersecurity insurance is a form of insurance for businesses and individuals which protects against internet-based risks. Not only does cyber liability insurance help prevent risks, but will also help companies weather the storm if a breach were to occur.

 What does it cover?

Cyber insurance generally covers business liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, bank account numbers, driver’s license numbers, and health records. The Insurance Journal tells us that besides expenses and legal fees, hacking insurance can also help with:

Notifying customers about a data breach

Restoring personal identities of affected customers

Recovering compromised data

Repairing damaged computer systems

Contact AWS Insurance today! Our expert agents will work closely with you to craft the perfect policy coverage for your small business needs.

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