Major Cyberattacks in Recent News Highlights the Need for Cyber Insurance

The news of the Russian cyberattack that breached SolarWinds, a critical networking software service provider to government and large corporations, was shocking because it gave hackers access to data secured by the Pentagon, Intel, Microsoft, and other critical infrastructure operations. But it didn’t grab much public concern. However, when succeeding cyberattacks crippled oil, food, water, and transportation operations, heads turned as news media outlets made cybercrime the lead story for days. As these announcements rolled, we noticed an uptick in calls with questions about NJ Cyber Insurance at the local level. 

The effects of the Colonial Pipeline shutdown in the wake of the ransomware attack against it sent shudders along the East Coast and economic repercussions nationwide with higher gas prices. Subsequent reports of ransomware attacks pulsed even more shockwaves across the US. 

Eyeopening reports of cyberattacks forcing JBS, the world’s largest JBS beef production facility to close, and attacks on Florida water systems, and the MTA shut down in New York city make the potentially disastrous effects of cyberattacks a clear and present danger. 

No Business Is Safe from Cyberattacks

While the front page news is on attacks against top-level governmental agencies, essential infrastructure entities, and private-sector businesses, cyber criminals’ attacks on lesser targets happen daily. 

The Hiscox Cyber Readiness Report 2021 found 43% of businesses of all sizes had at least one cyberattack in 2020. And nearly a quarter of companies with fewer than ten employees suffered a cyberattack. Regardless of size, the reality for business owners is cybercrime is serious, malicious, and it is only a matter of time before a cyberattack hits them.

What Can Businesses Do Now to Protect Against Hackers?

Among the many preventative steps you can take to protect your business from cyberattacks, we recommend instigating the following measures as soon as possible.

• Require multifactor authentication (MFA) for all network access.
• Institute the 3-2-1 Backup Rules to safeguard your data.
• Review your insurance coverages to make sure you adequately shield your operations against all insurable cyber risks. 

Establishing MFA is one of the most straightforward security measures to institute. This article, Why Multifactor Authentication Is Essential for Your Small Business, from The Motley Fool website is an informative source to learn your options for making MFA part of your cybersecurity measures. 

Having up-to-date backups readily available is critical to developing a robust disaster recovery plan. Your first steps are to use a version of the 3-2-1 Backup Rules that is best for your business. 

The third component that is crucial to your disaster recovery plan is your cyber insurance coverage. The alarming trend in attacks on the networks of businesses and organizations of all sizes indicates things are likely to get worse for the foreseeable future. 

How Cyber Insurance Safeguards Your Business

Of course, it’s an unwanted mess and expense to deal with cyberattacks, especially when they succeed. And when they do, your business has exposure to potential losses as a result. Your company also has significant liability risks when hackers access its network and sensitive data. 

At the Dickstein Agency, we continue to inform business owners about the cyber risks they face, along with advice on how to defend against them. An example is our recent post titled, The Top 4 Cyber Risks and Predictions for 2021. These and other efforts are part of our commitment to educate you about threats to your business and to offer suggestions to eliminate or mitigate them.

It’s Time to Update Your Cyber Insurance Protections

Typically, cyber policies provide coverage for the following:

• Forensic investigation to determine the cause of the breach/cyber attack.
• Notification expenses to alert affected customers that their personal information was compromised.
• Credit monitoring services for affected customers.
• Public relations for crisis management.
• Legal services to help you meet state and federal regulations.
• Lawsuits related to customer or employee privacy and security.
• Regulatory fines from state and federal agencies (for example, HIPAA violations for medical offices).

Supplementary Cyber Coverage Available

Consider adding the following protections to complement your cyber liability policy:

• Business Income and Extra Expense coverage to help replace lost income if you can’t run your business because of a data breach.
• Prior Acts coverage to help cover claims related to a breach that happened before your policy’s effective date.
• Extortion Coverage helps cover the amount you paid if someone takes your business’ data and demands a ransom. 

Our highly experienced staff at Dickstein Associates Agency will use their expertise to work closely with you. The goal is to provide you with NJ Cyber Insurance designed to meet your specific business and industry needs and provide comprehensive coverage at competitive rates. 

About Dickstein Associates Agency

Dickstein Associates Agency has distinguished itself as a leading provider of personal and business insurance in the tri-state area since 1965. We pride ourselves on being advocates for our clients and providing them with quality and affordable coverages. As Trusted Choice™ independent insurance agency, we partner with various national and regional carriers, allowing for flexible coverage for each client’s unique circumstances. For more information on how you can leverage all your insurance to work best for you, and how we can secure the best insurance in the marketplace suited to your specific needs and business objectives, contact us today at (800) 862-6662 or www.dicksteininsurance.com.