CLDA Mag : Given that most of our members are small businesses , wouldn ’ t that make them less of a target than larger ones ?
Blount : On the contrary . While every organization is vulnerable to these attacks , over recent years we have seen smaller companies become targets because bad actors assume they have not invested in cyber defenses .
CLDA Mag : What kind of insurance protection should a carrier have in this area ?
Blount : A broad stand-alone cyber policy is something they should consider . Some insurance carriers may also provide coverage on other policies , such as commercial general liability , property or business owner contracts . That coverage is limited . For example , many of these kinds of policies do not include reimbursement for ransomware . Additionally , with a stand-alone policy , organizations can usually take advantage of a multitude of free services such as cyber training .
CLDA Mag : What will it cover ?
Blount : Generally , but not exclusively , loss of profit due to a breach ( cyberattack ) or system failure , ransomware payment and to an extent , recovery from phishing attacks .
CLDA Mag : What won ’ t it cover ?
Blount : Generally , but not exclusively , losses not related to a breach or system failure .
CLDA Mag : What , if any advances , changes , improvements have been made in these policies that would be important to our members ?
Blount : We are now able to combine technology errors and omission coverage with cyber policies . This is especially important for CLDA members that are the providers of software and technology used by organizations within the industry . For example , refrigerated trucks many times rely on software and tech to monitor and adjust temperatures . Should the software fail and not perform according to its services , this could be covered by the policy .
CLDA Mag : Leave us with one important thought about cyberattacks and why coverage is so important .
Blount : What would you do in case of a cyberattack and your systems were shut down and locked ( i . e . encrypted )? Additionally , what if a ransom was requested for the attacker to “ unlock ” the systems ? Cyber insurance not only provides insurance coverage but provides access to cyber lawyers , vendors , and relevant parties to guide and support organizations through an attack . Responding to a cyber attack is a very stressful situation , do not go at it alone .
For more information about your company ’ s liability and protection from a cyberattack , contact Allen at ablount @ risk-strategies . com CLDA
Cyber insurance not only provides insurance coverage but provides access to cyber lawyers , vendors , and relevant parties to guide and support organizations through an attack . Responding to a cyber attack is a very stressful situation , do not go at it alone .
42 customized logistics & delivery Magazine I spring 2023