Are You at Risk for a Cyber-Attack?

Business Insurance, Cyber Insurance ● Feb 22, 2022

Are You at Risk for a Cyber-Attack?

A Cyber Policy with Knight Archer Insurance can ...make life easier while providing coverage for exposures you may not have forseen.

Malware

Malicious software, including spyware, ransomware, viruses and worms. A network is breached through a vulnerability when a user clicks a link or email attachment that then installs dangerous software.

Man-in-the-middle

Also known as eavesdropping attacks, occur when hackers insert themselves in a two-party transaction. For example, on an unsecure Wi-Fi attackers can insert themselves between a visitor’s device and the network. All information is unknowingly passed on to the attacker.

Phishing

The practice of sending fraudulent communications that appear to come from a reputable source, usually through email—with a goal to obtaining sensitive data or installing malware on the victim’s computer.

Denial-of-service attack

This type of attack floods the systems, servers or networks with traffic to exhaust a company’s resources and bandwidth so that they are unable to fulfill legitimate requests.

Examples of Cyber Breaches:

• An HR recruiter for a healthcare organization accidentally attached the wrong file when sending an email to four job applicants. The file included HR demographic data consisting of 43,000 former employee names and addresses.

• An employee of a non-profit organization clicked on a malicious link in an email and malware was downloaded onto the company server, encrypting all information. A message appeared on the employee’s computer demanding a ransom to be paid in exchange for the decryption key.

Cyber Insurance Coverage Response:

Third-Party Liability

• Protects companies for liability to others and reimburses companies for expenses related to a data breach which could include legal counsel and defense.

• Will provide a digital forensics team to determine notification costs, crisis communications and setting up a call center and credit monitoring for those affected by the data breach.

First-Party Coverage

• This coverage reimburses companies for expenses related to recovering from damages to computer programs and electronic data.

• Business Interruption includes expenses and lost revenue due to a computer virus or denial-of-service attack that impairs a computer system.

• Cyber Extortion stemming from monies to pay ransom demands, cost of hiring experts to negotiate with hackers, and determine how hackers gained access to the insured’s computer.