Cyber Risk Management and Cyber Liability Insurance

By: Rebecca Gomez

Last weekend, a ransomware virus known as “WannaCry,” affected 150 countries and more than 300,000 people. Ransomware is a cyber attack where hackers encrypt files from their victim’s server and holds them for ransom. In the case of “WannaCry,” the hackers demanded $300 to restore their data.

An important lesson to take from this incident is that no one is 100% safe from cyber crime. If the appropriate measures to protect your data are not diligently taken, your organization is vulnerable and recovering from a cyber attack can be costly. The Hiscox Cyber Readiness report stated that last year alone, cyber crime has cost the global economy $450 billion.

Below are some risk management tips your organization may want to consider regarding cyber risk:

• Conduct regular back ups of systems
•  Have strong passwords that are unique which provide a barrier against intrusions
• When using unfamiliar websites, make sure the URL begins with https. The “s” indicates that the site is secure.
• Continually install the updates your browser and operating system (including anti-virus and anti-spyware) requires.
• Be aware of the e-mail you receive: if the deal sounds too good to be true, be very skeptical. If you receive a message from your co-worker, employer, or someone you know and it sounds out of character, or includes nothing but a link in the body of the email, it may be suspicious. Check with the sender and make sure it is legitimate. This could be a phishing fraud.
• Do not use an unprotected Wi-Fi network for your business, always require a password and do not conduct business where there is public Wi-Fi.
• Password Protect smart phones and computers
• Train employees on cyber risk management

The “WannaCry” ransomware incident serves as a good reminder to keep current with system updates and to contact your IT person to check your organization’s software for vulnerabilities. Good data security is key to protecting your organization.

Cyber Liability insurance should be part of your organization’s risk management program.  If you have a Cyber Liability policy, be sure to review it and understand the terms and conditions. Many cyber policies offer effective loss control services to help protect your organization. Let us know if you have any questions regarding Cyber Liability or would like us to provide you with a quote. We are here to help.