Understanding Cyber Attacks
When you think about what usually causes a business interruption, natural disasters such as fires, earthquakes and floods probably come to mind first. These events can physically damage your property and equipment, making your workspace unusable for a time. The damages from Hurricane Katrina and Superstorm Sandy are great examples of how a natural disaster can put a halt to a business’s day-to-day operations. Many of those affected businesses remain closed to this day.
While natural disasters are still the main reason for an interruption, another cause is quickly moving up the ranks: cyber attacks. As businesses continue to rely on computers and digital storage of essential data, cyber attacks will continue to be a potential exposure. Read on to learn how a cyber attack could lead to a business interruption and what you can do to mitigate the risk.
How can a cyber attack cause a business interruption?
Hackers, thieves and other unauthorized individuals have become adept at exploiting weaknesses in a business’s computer system, whether through traditional hacking methods or social engineering. There are several types of attacks that could completely cripple your ability to perform normal business activities, including:
It is quite easy to see how any of these events might leave your company scrambling to do business. Unfortunately, many smaller businesses don’t have the manpower available to detect the problem and work on fixing it, which only increases the length of an interruption.
Third-party interruptions can have a major effect on your business
You can still be affected even if it isn’t your business that experiences a cyber attack. Imagine what would happen if one of your vendors suffered an attack, resulting in a complete shutdown of its warehouse or website. Unfortunately, attacks on third parties are often out of your control. Such an event could have a profound effect on how much business you are able to do, and that would trickle down to your customers, who may rely on your products or services.
Ways to prevent a cyber attack from causing a business interruption
A common saying in the cyber security world is, “It’s not if you’ll be a victim of a data breach, but when.” While 100% protection is impossible, you can help lower your chance of business interruption due to a cyber attack by following these tips:
How can cyber liability coverage help?
Most traditional commercial general liability (CGL) policies will not cover business interruption losses due to a cyber event. Luckily, cyber liability coverage can fill that void.
Should your business be unable to perform normal business operations, a cyber liability policy can help pay for expenses related to an interruption. The coverage pays for:
Cyber liability coverage also helps protect your business from the following events:
Even though business interruptions due to cyber attacks are relatively uncommon, being unprepared for one could prohibit you from doing business as usual. Contact ISU Cunnington & Associates today to find out how we can help you avoid a business interruption.