| January 27, 2022

A savvy business owner knows the importance of having good general and professional liability insurance.  However we live in a time of huge cyber exposures in today's digitally connected world full of social engineering attacks, data hijacking, loss of  mobile devices and laptops, coupled with weak passwords and so many other variables.  All large and small industries, businesses, nonprofits, cities, and governments are at risk.  Small and medium sized entities are becoming preferred targets due to limited resources that don't allow them to proactively defend against intrusion.  It doesn't matter if you are a company of one or ten thousand, your data and operational systems have price tags that not so well intentioned buyers are happy to pay for. 

To put perspective around cyber activity, it is estimated to be a SIX TRILLION DOLLAR INDUSTRY according to Cybercrime magazine.  This is a topic businesses need to take seriously as they develop business continuity plans.  Google the phrase "recent cyber attacks" and sit down before you are blown away by the number of hits you get in less than a second!    

Being aware of the impacts related to cyber attacks is key when developing risk mitigation and business continuity strategies.  Many cyber policy endorsements in traditional policies are not inclusive of certain cyber related losses.  This makes a stand alone cyber policy very valuable.  ALINK Insurance Services® understands this and can offer surprisingly affordable stand alone cyber polices with robust coverage options in minutes by partnering with companies whose technology allows us to deliver customized quotes during an initial call without having to ask the never ending list of application questions.  

Contact  us today for a customized business quote.   

Reasons to consider coverage include:

  • Security Breach Expenses - There will be losses & expenses directly linked with recovery activities after a cyber incident. 
    • (Investigation & forensic services, post incident monitoring such as credit monitoring for customers & more.)
  • Social Engineering - If an insured is tricked into transferring funds to an imposter and a documented procedure requirement was completed can this be covered?
  • Security Breach Liability - Your third party vendors for your business fall victim to an attack.  You can be legally responsible for third party liability resulting from their cyber incident.
    • (Defense expenses, settlement amounts, compensatory damages, fines & penalties from Government entities or for non-compliance with Payment Card Industry Data Security Standards.)
  • Ransom Payments - Access to your data and systems can be held hostage until you pay a ransom for its release.
    • (Not all cyber policies extend coverage for ransom payments.)
  • Restoration of Electronic Data - Costs may be incurred to replace or restore electronic data and programs following a cyber attack.
    • (Cost of data entry, reprogramming, consultative services, etc.)
  • Hardware Replacement Expenses - What is the price tag for computers or related devises and equipment needing to be replaced due to corruption of software or firmware?
    • (This should be assessed and built into a risk mitigation plan.)
  • Extortion Threats - When discovered during a policy period what can be covered?
    • (Hired resources that help access the viability of a real threat, ransom payment interest expenses, reward payments leading to conviction, other reasonable costs.)
  • Telecommunications Fraud - You may have expenses for calls or telephone system bandwidth utilization.
    • (This includes and is not limited to phone bills.)
  • Aftermath Breach Remediation - Following an incident labor expenses are needed to repair and resolve failure points in systems and flows.
    • (Improvements must demonstrate lower risk of future damage occurring.)
  • Public Relations - Restoring a business reputation will cost money.
    • (Public relations support to advise how to best communicate with clients and the community, helping avoid further litigation risk and degradation of goodwill.)
  • Business Income & Extra Expense - Not being able to conduct business results in income loss and extra expenses that were not budgeted for.
    • (Includes net income loss due to that would have been earned.  Note, this isn't for a non cyber related system failure or voluntary shutdown.)

It is important to understand your existing policy cyber endorsements since many will limit or exclude certain coverages.  Unless specifically added they may not exist at all.  ALINK's team of insurance advisors can help define the best solution to protect your business.

Contact us today for a customized business quote

ALINK Insurance Services® is "Your link to Security!" ®

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