The Blind Spots That Kill Businesses: 7 Hidden Risks Every Entrepreneur Ignores
Download MP3Episode Description
Cyber liability insurance is heating up in the commercial space, but there are hidden risks that even insurance brokers sometimes overlook. This episode reveals critical third-party cyber risks that could devastate your business and how to protect yourself from threats you didn't even know existed.
Key Points Covered:
- Third-Party Cyber Risk Overview - The most overlooked aspect of cyber policies that creates two-way vulnerability for businesses
- Incoming Third-Party Threats - How vendors, customers, clients, or colleagues with cyber risks can affect your network through connected systems
- Outgoing Third-Party Liability - When your cyber breach affects customers, clients, or vendors who may seek recovery for their losses
- Policy Coverage Gaps - Why you need to verify third-party risk coverage in both directions before assuming you're protected
- Vendor Due Diligence - Ensuring that vendors and clients you work with have cyber liability policies covering third-party risks
- Contract Protection - Including cyber liability clauses in new contracts to safeguard against breaches from business partners
- Real-World Example - The CDK cyberattack that affected tens of thousands of car dealerships, causing weeks of operational downtime despite none being directly hacked
- Coverage Decision Framework - How to evaluate whether to pay extra premiums for third-party coverage or accept the risk with cheaper policies
- Insurance Industry Trends - Why insurance companies are seeing third-party risk as a key factor in cyber insurance claims and financial losses
- Interconnected System Risks - How increased reliance on interconnected systems and software vendors contributes to growing cyber impact
Action Items:
- Review your current cyber policy for third-party coverage gaps
- Assess vendor cyber security policies and insurance coverage
- Consider adding cyber liability clauses to new business contracts
- Evaluate cost-benefit of enhanced third-party cyber coverage
