2021-06-09 17:28:52Thought LeadershipEnglishThey reached out to Coalition, their cyber insurance provider, who immediately began discussions with financial institutions and law...https://quickbooks.intuit.com/blog/us_blog/uploads/2021/06/Cyber-Crime.jpghttps://quickbooks.intuit.com/blog/thought-leadership/why-you-need-cyber-insurance-to-protect-your-business/Why you need cyber insurance to protect your business

Why you need cyber insurance to protect your business

4 min read

A small law firm that regularly handles a high volume of wire transfers became the victim of a social engineering incident. A hacker sent a fake email that looked legitimate to their controller – successfully impersonating the company’s CFO – asking them to wire a large amount of money. The controller wired the funds to the cyber attacker – losing $200,000. The company thought the funds were gone for good, and thought they were just another victim of funds transfer fraud.

Luckily, the firm had cyber insurance.

They reached out to Coalition, their cyber insurance provider, who immediately began discussions with financial institutions and law enforcement. Within 24 hours, $150,000 of the initial loss was recovered, saving the firm from a devastating event.

That money was returned to the law firm, and their insurance policy was able to cover the remainder of the lost funds. This meant they were able to get back to business quickly. Coalition’s security team also helped the company apply necessary cybersecurity measures to make sure they didn’t suffer this type of loss in the future. They implemented what is known as two-factor authentication (2FA), which meant that wire transfers required additional layers of approval via encrypted technology in order to move forward with significant wire transfers.

To make sure your business doesn’t fall victim to this type of cyber attack and you have the right teams in place to help you recover quickly after an incident, you need to explore cyber insurance policies that fit your needs. Many small businesses think they are too small to need cyber insurance, but they’re wrong. In 2020, 58% percent of cyber losses targeted small- to mid-size businesses. Let’s go over what cyber insurance is, what it covers, and what you get when you select coverage from Coalition.

What is cyber insurance?

You may think your general liability insurance policy is all your business needs, but these policies don’t cover the loss exposures that cyber insurance policies do! What happens if your company is hit with malware, ransomware, or suffers a data breach? You need cyber insurance.

Cyber insurance – also called cyber liability, internet liability, electronic media liability, and network security & information liability insurance – helps companies weather the storm from many technology-based risks that might impact them. This includes risks associated with a company’s IT infrastructure and activities such as systems failure, cyber attack, or data breach.

What does it cover?

Every business faces cyber risk, no matter how small. Cyber risk includes privacy risk, security risk, and operational risk. Cyber insurance helps cover legal fees and expenses, but it can also help you with other essential tasks, including:

  • IT forensics.
  • Negotiation and payment of a ransomware demand.
  • Recovering compromised data.
  • Notifying customers of a data breach.
  • Public relations expertise.
  • Credit monitoring and identity restoration.
  • Losses that arise from security failures and system failures.

Why choose Coalition?

Coalition covers the many expenses that arise from cyber incidents and technology failures. Coalition offers full limits, enhanced business interruption coverage, protection from physical cyber attacks, computer replacement coverage (an industry first), and more.

We cover up to $15 million in financial, tangible, and intangible damage to your business. This is a snapshot of what Coalition covers:

  • Stolen funds: If social engineering leads to a fraudulent funds transfer or financial loss, we’ll make you whole (and help recover the funds!).
  • Lost business income: We cover the financial losses when a security incident brings your business offline.
  • Breach response costs: We’ll cover the legal, incident response, forensics, and PR costs following a breach, as well as the costs to notify your customers and provide credit monitoring.
  • Cyber extortion: We cover the costs to respond to a ransomware incident, including money, securities, and even cryptocurrencies paid.
  • Computer replacement: We’ll replace your computer systems negatively impacted by viruses and malware.
  • Bodily injury: You’re covered if an IoT device or industrial control system is breached, resulting in physical damage.
  • Pollution damage: Security failures can even result in pollution damage.
  • Reputational harm loss: If your business loses money as a result of negative press, we’ll help make you whole.
  • Reputation repair: We’ll pay for PR to restore your reputation, if you’re impaired by a security failure.

Coalition is more than just insurance. Coalition’s dedicated claims and incident response teams are available 24/7 to help you navigate security incidents such as ransomware, funds transfer fraud, and data breaches. We coordinate with law enforcement and financial institutions when needed, and our in-house incident response capabilities are unique in the cyber insurance industry.

Together with QuickBooks®, Coalition offers small businesses the most comprehensive cyber insurance coverage available, helping you proactively protect your business from cyber threats and reputational harm.

Learn more about cyber insurance

It’s hard to imagine your business will ever be the victim of a cyber attack, which is why it’s so important to guarantee you are protected if the worst should happen. Being proactive about your cybersecurity, and finding a cyber insurance policy that’s right for you, will keep your business safe and give you peace of mind. Download the 2021 Cybersecurity Guide for 10 easy (low-cost and free) ways to secure your business today– vetted by Coalition security experts.

Learn more about how cyber insurance is good for you and your business.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.
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