The Expert Podcast

Cyber risks are more than just cyber liability. You've heard of cyber liability and cyber attacks. The total possible liability goes beyond just the cost of an attack. Many factors come into play, referred to as perils—things that could affect you as an insured.

A couple of examples: some contractors are having to pay settlements because they didn't keep up with updated defenses against hackers and ransomware. In these cases, it's because they didn't even perform basic tests or regular monitoring. Another example is supply chain security. Do you know if your supply chain and suppliers are secure with their cyber defenses or cyber insurance?

If you don't make basic inquiries to your suppliers, and one of them is hit with a cyber attack that prevents you from manufacturing products or providing services, your customers might be dissatisfied. In a worst-case scenario, they could leave and go to another company or even sue you for not fulfilling your contract. Therefore, you must ensure that your suppliers are dependable—not only in terms of raw materials, management, and capitalization—but also that they have proper defenses against cyber attacks or insurance that covers you if they are attacked.

You will be back in your video in just a few seconds. In the meantime, remember that actualhuman.com offers live one-on-one private video consultations with an expert in this exact subject. We want to listen to your story, hear your questions, give you expert advice, and provide you with information about your particular situation. Now, back to your video.

Look, nobody can prevent every single cyber attack. Hackers do this as a full-time job; they are constantly figuring out how to breach networks. You want to implement best practices, conduct regular testing, and maintain and monitor your systems. However, you also need to be prepared for incidents.

For example, in your building, you likely take precautions against fire: you don't store oily rags next to the heater, you don't allow smoking in the warehouse, and you keep flammable items secured outside. But you still have a fire extinguisher in case something happens. The same applies to cyber attacks: you want to prevent them but also be prepared if they occur. How will you survive? Do you have a response plan, an insurance policy, and internal personnel ready to take action to prevent further losses?

Losses from a cyber attack are three-fold: financial losses, personnel losses (you could lose good employees if a hack shuts down your company), and practical losses (you might have to spend days or weeks on non-productive tasks instead of selling or manufacturing more products).

You must account for all these types of losses when an attack occurs. If you're a smart company and a good business person, you'll have procedures in place for every type of contingency to ensure your business thrives even in the face of a cyber attack or fraud event.

Thank you for watching. Remember, you can access live one-on-one personal consultations with a licensed private investigator, a licensed commercial insurance broker, a licensed certified real estate title examiner, and a certified civil court mediator. If you need to talk to an expert in any of these fields or even a licensed building general contractor, click the link below to actualhuman.com and arrange a live one-on-one consultation with a licensed expert who will give you their undivided attention. You can ask any questions and get information about your situation. We would be glad to help.