CYBERSECURITY
The Cybersecurity Threat :
Protect Yourself Now
It was Dmitri Alperovitch , cofounder of the cybersecurity firm CrowdStrike , who famously said , “ There are only two types of organizations : those that know that they ’ ve been hacked and those that don ’ t yet know .” According to multiple online news sources , cybersecurity is seen as one of the biggest current threats to businesses worldwide . Juniper Research has projected the cost of cybercrime at $ 2 trillion globally by 2019 . That ’ s only two years away !
We have already seen how major data security breaches can spell disaster for high-profile companies like Target , The Home Depot and JPMorgan Chase . Target alone reported that the breach of its customer data cost the company upwards of $ 250 million . Data breaches can be caused by a multitude of commonplace incidents that you may not even give a whole lot of thought to like a leaked password , a disgruntled employee , a lost mobile device or a lack of encryption .
No longer is IT security solely the purview of the IT department , either . Threats — and security budgets — have increased and will continue to increase to the point that savvy companies need to involve the highest levels of management in its data protection initiatives . Not only is the privacy of customer information at risk — as bad as that is — but so is a company ’ s reputation , legal protection , financial stability , employee privacy and intellectual property resources . The sad fact is that regardless of company size , industry or geographic markets , no organization is immune from cybersecurity threats in today ’ s unsettled world .
Ideally , a company ’ s senior IT executive would work with the person responsible for keeping the company ’ s assets protected — most likely the CFO — to develop a strong action plan for minimizing the chance of a serious breach . Integral to the plan is a comprehensive insurance policy that will cover the company in the event of cybersecurity losses . Here are some of the standard coverages offered in a cyber policy :
• Network security liability
• Private liability
• PR / crisis management
• Regulatory liability
• Data recovery
• Business interruption
• Cyber extortion
• Cyber crime / social engineering
This is a new area of risk for many companies as well as agencies and brokers . Some agencies may neglect to protect this area of their client ’ s business simply because it is unfamiliar territory for them ; they don ’ t know what types of policies are available and which insurers are the preferred providers . There is a definite learning curve involved , so companies seeking protection should ask a lot of questions , compare policies in detail and scrutinize potential coverage areas carefully .
JGS Insurance has a long history of protecting companies against cyberrelated losses and can help develop a proactive coverage plan that integrates cybersecurity with the rest of your company ’ s insurance needs . You may not be able to avoid cyberattacks entirely , but it certainly makes sense to try to anticipate serious leaks to the greatest extent possible . To learn more about JGS cybersecurity coverage , please contact your JGS broker or visit www . jgsinsurance . com . +
BY : MEAGHAN TYNDALE-WILLIAMS VICE PRESIDENT , JGS INSURANCE
Meaghan Tyndale-Williams began her insurance career with Liberty Mutual in Commercial Lines as a Direct Sales Property & Casualty Producer . She won numerous sales contests and awards while at Liberty Mutual including 2008 Producer of the year , Millionaires Club and Liberty Top Producer Club . In 2014 , after having her first of two children she transitioned to JGS Insurance to be closer to home and began her current position as Vice President .
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