Three ways cyber insurance can save the day for businesses

  Three recent news items highlight the importance of cyber insurance and show how the coverage can make a major difference for businesses:

News Item No. 1: Confidential customer data accidentally shared: According to The New York Times, a lawyer for a firm serving as outside counsel for a financial company mistakenly sent confidential personal financial information on at least 50,000 financial advisory clients to another attorney. The client data included Social Security numbers.

How cyber coverage can help your business in a similar situation: Accidents happen, the cyber liability policy covers the unintentional/accidental release of data.

News Item No. 2: Ransomware inflicts financial pain on hospital: A New York hospital estimates a ransomware attack on its computer systems cost almost $10 million, per The Buffalo News, with some of the expense due to “the loss of business during [system] down time.”

How cyber coverage can help your business in a similar situation: Commonly offered in cyber policies, business interruption coverage kicks in when a cyber incident, such as an attack, halts operations. The payout can help reduce the impact of a costly operations shutdown.

News Item No. 3: Small businesses hurt by cyber attack on shipping firm: In late June, the NotPetya ransomware attack affected many businesses worldwide, including a major European shipping firm. According to the BBC, the trickle-down effect of delayed shipments on smaller businesses in the United Kingdom has been “debilitating,” the Federation of Small Businesses said.

How cyber coverage can help your business in a similar situation: Worried about an external logistics issue hurting your ability to buy or sell your products? Adding a cyber dependent interruption endorsement or a contingent business interruption endorsement to your cyber policy might make sense for your firm.

Let Plexus lend a hand

For more information on The Plexus Groupe’s cyber risk management solutions or an overview of the protection cyber coverage can provide, contact Client Executive Willie Lindsey at 847-307-6163 or wlindsey@plexusgroupe.com. You can also contact us via the Web.