Cyber Insurance: Why You Need It.

In 1975, when I started as a newly licensed insurance agent, we had no worries about protection against computer hacking or the need for cyber insurance. Only the government and very large corporations needed to be concerned. Popular movies depicted those very scenarios, including War Games (1983) and Sneakers (1992).

Today, hacking has become more prevalent, and companies are even more vulnerable to attack. Stories in the news tell us about hackers demanding ransom to release systems they have breached. Not only are large companies vulnerable, but small to medium-sized companies can be attacked through things like phishing scams, with malware and viruses set off when you click on a link or open an attachment. 

Antivirus software can only protect you for what they are programmed to find, and malicious agents are vying to stay one step ahead. Programs need constant updating, and even then they can still have vulnerabilities. Even small companies today rely on the internet and use email.

What happens when something does get through? Loss of income, loss of data, loss of business. Cyber attacks can be very costly to remedy once they happen. 

That’s where Cyber Insurance comes in. Coverage protects you against these losses. And it’s not only companies of any size that need coverage. Increasingly, identity theft, credit card fraud, and even bank account siphoning happen to individuals. Retirees can be especially vulnerable.

We cannot imagine not being connected–and our access is right there with the smartphone in your hand. Your contacts, your social media, your apps; we deposit checks and pay bills by phone; keep in touch by email, text, or post. We play games, go shopping, and even order and pay for our cup of coffee at the coffee shop. 

And it’s not only our phones that are “smart.” Our refrigerators, washing machines, security cameras, and doorbells, even our thermostats provide the opportunity for hacking if they are set up for internet access.

Cryptocurrency is another avenue for scamming. One scheme is even called “pig butchering” as the victim is drained of their financial assets. Pig Butchering

This is a longer-term scam where someone builds up your trust and then takes you to the proverbial cleaners.

Think about how many times a day you might get a call, text, or email from someone you don’t know. If you engage at all, you could be opening yourself up to an attack. 

Phone and text scams include delinquent toll charges, outstanding arrest warrants, or missing jury duty. Scammers claim to be officials acting on behalf of the relevant agency or department. Boston News

With the right plan and coverage, you could be protected from these kinds of losses. Contact our office today to start the process. We will work with you to review your options and get you the policy that fits your needs.

Along with having cyber insurance, whether at your business or your home, our next article will suggest some precautions to lower your risks.