Cyber risks pose complex challenges for many companies, both here in the US and abroad. Many corporate risk management teams are implementing ways to combat the threat of losses due to cyber attacks. Cyber crimes are one of the costliest issues facing corporations big and small, requiring a thorough understanding of the constantly evolving exposures, as well as a need for the tools and techniques now available to address them and minimize varying degrees of reputational damage.
Stolen data and confidential records create serious concerns for any company, but firms dealing with sensitive material can use good cyber risk management as a differentiator from competitors along with it being a good selling point to their clients, and also as a measure of reassurance to company stakeholders.
Cyber risk can take on a wide variety of forms
While the true extent of the risk factors has yet to be fully assessed, let alone managed, the threat is very real. It may come in many different forms, from virus infections, Internet fraud, and industrial espionage, to misuse of personal data, (for example identity theft), and copyright infringements.
There also exists the “denial-of-service attacks” that block targeted sites by overloading them with communication requests. Companies that are affected may suffer extensive losses, either in terms of turnover or as a result of liability claims made by clients or business partners.
Most traditional property and liability policies provide no coverage for cyber risks and this creates an increasing demand in the corporate sector for insurance solutions that address these risks with a potential for loss accumulation. Individual policies for cyber are designed to cover a wide range of first-party and third party losses.
Many major U.S. companies have made it a priority to acquire cover against cyber risks , realizing the necessity to provide adequate protection against data abuse. Any company can suffer image impairment where cyber intrusions are a concern making a heightened effort to secure protection against these attacks a necessity. Otherwise this can severely cripple a business or perhaps an entire industry. Cyber attacks can burden companies with substantial costs, which is why having your clients secure coverage that provides solutions to cyber risk is essential.