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Ransomware, cyberattacks increasing dramatically

Ransomware, cyberattacks increasing dramatically

Most everyone has heard of ransomware and cyberattacks and now many of us have been directly affected by it. Just look at the impact the Columbia Pipeline attack created for the eastern half of the country.

These types of attacks are more prevalent in our society and aren’t just isolated incidents anymore. According to the Harvard Business Review, cyberattacks were up 150% in 2020 over the previous year and the amount paid was up over 300%. This year has already seen a dramatic increase in activity with high-profile ransom attacks against infrastructure, private firms, and cities and towns across the country.

You might say, “I’m just a small to medium-sized business in Small Town USA. So what?” How can this affect you, our retail agent customers, and our common customers, our insureds? Here are a few ways that ransomware and cyberattacks can affect us:

  1. Increased costs – cyber insurance premiums, contracted technical consultations, security hardware, and software costs.
  2. Loss of income/operational disruption – if you do fall victim to an attack, your operations may cease during your recovery
  3. Damage to reputation – depending on the depth of the breach, your reputation can be damaged if it goes public especially if your customer's private information is compromised.
  4. Stolen intellectual property – your company’s or your customers’ product designs, technologies, or market strategies could be compromised as well.

Overwhelming, but you can help protect yourself and your customers. 

  1. If you do not have any type of antivirus/malware protection besides Windows Security, you should protect your network with a hardware/software solution. Contact a local technical consultant for advice on how best to do this (and quote their professional liability while you are at it).
  2. Get information and/or a quote for cybersecurity from your insurance carrier.
  3. Offer cyber liability to all your existing commercial customers and with any new quote you provide to your customers.

We have several markets for cyber liability to meet your needs. For more information, contact, Tate Tooley, ttooley@bloss-dillard.com, or one of our P & C underwriters for a cyber liability quote.

Posted by Tate Tooley, IT on Aug 4, 2021