The Expert Podcast

So what are the best practices for a business to take care of cyber security? Any company has certain risks for cyber security, and if you're watching this video, it's recorded on November 23. You may be watching it a year or two later. The awareness and significance of cyber security risk may not be apparent at the time of this video being recorded, but by the time you're seeing this in 2014, 25, or 2026, it's very likely to be much more visible.

What are the risks for cyber insurance or cyber security? We're going to look at a couple examples and see how a few different companies deal with this. First, we're going to take a look at a company called Coalition. Coalition is an insurer; they sell cyber insurance, but more importantly, they also provide active monitoring. If you click our link below at risk coverage, you can get more information about Coalition. They have an incident response team, so if you are an insurer and you have some type of event, you pick up the phone, call them 24 hours a day, 7 days a week, and they kick in their incident response team. And this could be for cyber attacks; it could be for ransomware; it could be for recovering data. And with an insurance policy in place and the support of cyber ENT response, it eliminates most of the risks that a business could have.

What are those risks? Well, this company is an example. They're facing litigation over a data breach. Not only did they lose money because they had a data breach, but now they're getting sued by their customers, their vendors, their employees because of this data breach caused damage to third parties. It's called the domino effect. And in most cases, cyber insurance would cover this if there's third-party coverage. Check your policy, but you want to make sure that you're aware of the risks and the losses that can occur.

Besides having the fixture data, even Ace Hardware, a major company, just last week had a major breach where thousands of their devices were hacked, and they were unable to process online orders. And this existed for between 12 and 18 hours, depending on how you measure it. Well, think about how much money is lost if you're unable to process online orders for a day or two, right? It also says that no deliveries will be made because Ace Hardware is unable to receive orders from his retailer. So even if you buy something at a retailer, you can't get the order placed. There was the Big Oak to hack. This is important to know about because it all stemmed from an employee using their personal Google account on a company laptop. An employee went over to their Google to maybe check their email, watch YouTube, or something like that, and the hacker got in through that channel, through that vector, to hack the company. These are the things that can happen even with very good cyber security, cyber defense, and IT procedures. This can happen.

And in the industry, what this creates is more of a need for specific cyber-type resources. This is a company; it's an insurance brokerage, just like us, that says they're ruffling some feathers. It is a cyber-only insurance brokerage. It is the first of its kind. Well, you know, we've been doing cyber only for a couple years, but either way, this is where the industry is going because cyber security, cyber defense, and cyber protection are very different from other types of risk coverage and risk prevention.

So if you do have questions about cyber risk and cyber protection, cyber monitoring, or cyber insurance, you can check out our website at the link below. (https://riskcoverage.com/)