Many business owners believe that their cyber insurance policy will cover whatever is thrown at them. But, instead, business owners are finding that actions that they or their employees take may be voiding the expected benefits of their cyber insurance policy. Business owners need to understand two things that might be voiding their cyber policies.
First, BYOD, “Bring Your Own Device,” is a common practice in the workplace, nowadays, but beware of the implications on your insurance policy. Even if the mobile device belongs to the company and there is an attack, the policy might be nullified. “Remote devices might not be protected to the same degree as the central company network and could offer an easier route of entry to potential hackers. Mobile apps that are used to control internet-connected monitoring systems were recently discovered to contain significant security weaknesses that, if exploited, could allow attackers to damage critical infrastructure,” CSO Online says.
Second, your response to a ransomware attack needs to be carefully coordinated with your cyber insurance carrier. Ransomware, a term that most of us have become familiar with, is an extortion practice used by cyber criminals. The bad guys hack into your database, steal important files, and encrypt them with passwords so that you cannot access those files without paying the criminals to release the files. Some cyber insurance policies cover ransomware payments, but again, it’s essential to know the terms. For the policy to be valid, you might have to notify the insurance company about the threat or the demand immediately so that the insurance carrier can authorize a payment.
Although you may think that your company is protected because you have a cyber insurance policy, common business practices and your possible lack of quick response (as may be required by the insurance policy’s terms) can nullify the policy that you’ve been paying premiums for. It’s important to cover all your bases. Something as small as a bringing a computer home can put your company in a vulnerable place with regards to your insurance coverage.
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