Events that could disrupt normal business operations have changed from the days when most companies were only concerned about workplace accidents. Now, business owners also have to deal with the complexities presented by an era that is highly dependent on communications and information technology.
The world was recently taken by surprise as Apple’s iCloud Service reeled from a huge debacle caused by an unknown hacker, who was able to copy private photos of about a hundred high-profile personalities and leak these files through image-sharing websites. Aside from invasion of privacy, hacking activities can lead to more troubling outcomes, an example of which is a cyber-attack on one of the world’s most recognised investment banks. A CNN Money report provided further details:
The FBI is investigating hacking attacks on 7 of the top 15 banks, including one against JPMorgan Chase, according to someone with direct knowledge of the attack.
The extent of the damage — and who did it — is still unknown. A person who analyzed the attack said hackers used sophisticated, never-before-seen malware to get deep enough into the banks’ computer systems to delete and manipulate records.
That could affect all sorts of bank logs, maybe even consumer or investor accounts. But the likelihood of that is still unclear. As for the damage, customer bank accounts are often insured by the banks in the event of a cyberattack.
J.P. Morgan is a well-established business and a large financial institution that can survive and immediately recover from regular attempts by external parties to infiltrate their system. Small businesses and startups, however, do not possess the same capabilities that big banks or conglomerates have to be able to quickly respond to cyber threats, which can compromise their systems and even negatively affect their day-to-day operations.
In light of such dangers, smaller-scale enterprises need to consider taking measures to reduce or shift the risks brought by cyber-attacks and other emergencies. Securing business continuity insurance in Buddina, on top of a regular property or casualty policy, can be an effective method to ensure that these businesses are financially covered when they encounter cyber assaults and similar events.
Just like how companies use business interruption insurance to deal with emergencies like fire and property damage, businesses can also use this type of insurance to handle losses brought by disrupted operations due to hacking and other cyber threats. Many business owners are now seeking quality cybercrime and cyber liability insurance policies to complement their existing business interruption policies. These provide not only protection for third party losses but can be designed to protect the costs of your own ransom, extortion and business expenses in mitigating the loss.
Experienced insurance brokerage firms such as Insuring theProduct can enlighten business owners on how coverage for interruptions–especially for events that heavily affect their servers and data–could help them during the recovery period.
(Source: FBI investigating hacking attack on JPMorgan, CNN Money, August 29, 2014)