Cyber Liability Insurance is Now a Top Priority – Here’s Why

 In Cyber Security

Is your business ready to deal with a cyber attack? Is it strong enough to counter a breach of your system? Valuable data that was once in your possession can get in the hands of a malicious player. You need to be ready for when that happens to your business. Cyber liability and insurance helps you cover for this drastic possibility.

Why Should YOU Care About Cyber Insurance?

According to Forbes, about 3,800 data breaches were recorded in the year 2019, and this number has only grown ever since. A large percentage of data breach attacks happen to small business owners which include business such as you and others. Therefore, if you are still hanging over the misconception that mid-sized to small businesses do not have to worry about data breach and so cyber insurance should not concern them, then you may need to think again.

The average cost of dealing with a data breach can average out to thousands and hundreds of dollars in some instances. This estimates to an amount of money that startups and other juvenile enterprises simply cannot afford. The mentioned cost of data breach also does not include indirect cost and loss of data breach cost that comes with it.

The Face of Cyber Crime

So what does cyber crime actually look like? This is important to know so that you can scope out the gravity of the situation. You need to figure out the type of activities that come with cyber crime in order to understand what your cyber liability will cover for you. The most common face of cyber crime takes shape in the form of ransomware. This refers to a malicious actor holding your data hostage until you pay a monetary amount to the malicious actor in order to gain back the access.

Another face of cyber crime is malware which is the installation of malicious software on your business’s system. This software is designed to steal data and possibly corrupt it so that your business has to deal with a major disruption. Phishing is another way that cyber criminals use to penetrate your system, but it differs from other methods since it uses deceptive tactics.

During a phishing attack, a bad actor will trick you or your workers into providing them with either the access to your data, or the money to their business. For instance, it involves the use of fake emails to look like authentic ones, which in turn cause you to share information with you and the bad actors. This can be intellectual property theft where someone intrudes your system and steals proprietary and confidential business data.

A denial of Service attack or a DDoS attack is one in which your service gets overloaded with a high volume. This volume is a way of taking down your system. Other systems include a social engineering attack, which is similar to the phishing attack, and designed to take you and your workers into doing something that they are not suppose to do. This also includes fraudulent transfers.

Types of Data at Risk

Businesses that collect personally identifiable data run the greatest risk of a breach, and in turn require cyber liability to a good extent. This type of data includes the user’s personal data of the users. For instance, MSPs will usually collect this data so that they can integrate a sophisticated access control system for the business network. Having this type of sensitive data means you need to equip your business with a comprehensive cyber security system.

Other type of data that needs comprehensive protection includes a PCI, or Payment Card Industry data which involves payment addresses, security data, credit card information and more. Businesses also need sign up with cyber liability insurance so that they can be responsible of their employee information. This pertains to hired dates, social security numbers, tax records and other confidential things such as that.

Prescient Solutions offers Certified Services

If you want a Cloud Service Provider that can help you navigate cyber liability insurance providers and get you set up today, then Prescient Solutions has you covered. They also provide a wide range of services and solutions, and are entrusted by many businesses as a primary service provider. Tailoring their services according to your needs and requirements, all types of organizations can get sufficient value. Not to mention, they also provide cost-effective solutions to all your IT needs. Get in contact today by filling out an online form, or call at (847) 240-3900, for more information.

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