Why Cyber Insurance?

Filing and Smiling 

When is the last time that you filed a piece of paper?   

It used to be that a file cabinet was like your personal bank vault – holding the papers that defined and valued a business. From employee records to bank statements, that file cabinet had everything necessary to keep things humming along.  Each drawer’s value was dependent on the information that it contained within.  

To protect those files and the information on each page, some drawers were locked.  Some file cabinets were kept in executive offices with limited access.  To protect the actual cabinets, keys were hidden, office doors were locked.   

Policies Are in Place 

The building is insured by a policy that would offer compensation should theft or fire occur.  Security alarms and systems can be installed.   

Some buildings have officers and cameras watching for suspicious activity.  Businesses have seen the need to instill additional measures outside of physical protection, like sending data “offsite” or “into the cloud” for backup.   

Most of these preventative measures remain in place today – but they protect computers and information that isn’t stored on paper.  Fewer file cabinets can be found in offices.  Now their drawers hold office supplies, a box of tissues, or extra toner for the printer.   

But I Didn’t Even See Their Face 

So, who is protecting the files?  The data?  The electronic “pieces of paper” that define and value the business?  Yes, you can have anti-virus software, firewalls, and additional measures in place to protect your business.   

But what happens if there’s a theft or crime that you never saw happen?  What if the criminal isn’t an actual person to apprehend, the damage isn’t a fire that you can put out, and the records aren’t there for you to retrieve and pull from backup?  Building insurance isn’t going to cover a break-in that didn’t happen.  The damage isn’t by fire or water – so what kind of insurance claim do you file?  

There are hostages in this disaster, but they aren’t people – they are your priceless files.  The very ones that keep your business humming and running and hold all of the value of your operation.   

Now What? 

Let’s take a ransomware attack for example. The ransom will be set, and you have no choice but to pay it – but with what?  With your savings?  With funds from the business?  If you do that, how will you pay your employees?  What if your clients find out?  Will they trust you?  How will you regain that trust and ensure that this won’t happen again?  Do you have to report this to the authorities?  Does that mean you have to hire a lawyer?  And did someone just say they will sue you for negligence?   

Should you just shut down and run?  That feels like the only solution, but it’s not even close to feasible.  You have a family.  Your employees need this job.  You need this job.  

 And THAT is why you need cyber insurance.  

Consider this, the first car was invented before 1900.  Auto insurance became mandatory in 1927.  How many disasters had to occur before we realized that cars were not going anywhere, and measures had to be put in place to protect individuals?   

Don’t be caught in that gap with your business.  In this case, ignorance is not bliss, it could mean the difference between survival and demise of your business.  

This is the new normal.  Times have changed, and so has the way in which you need to protect your business.  

 

Let us keep you covered

Cyber Insurance