How can cyber liability coverage help?

          Cyber Attacks – A Growing Business Interruption Threat


Most traditional commercial general liability (CGL) policies will not cover business interruption losses due to a cyber event. Luckily, cyber liability coverage can fill that void.

Should your business be unable to perform normal business operations, a cyber liability policy can help pay for expenses related to an interruption. The coverage pays for:

        • Lost income due to the event

        • Profits that would have been earned had the event not occurred

        • Operating expenses, such as utilities, that must be paid even though
        business temporarily ceased

        • Rented or leased equipment

Cyber liability coverage also helps protect your business from the following events:

        • Data breaches, including costs for customer notification, some legal
        costs and credit monitoring for those affected

        • Damages to third-party systems, if, for example, an infected email from
        your servers crashes the system of a customer or vendor

        • Data or code loss due to a natural disaster or malicious activity. Physical
        destruction of equipment is covered under a different policy.

        • Cyber extortion, including ransomware, which is malicious code installed into
        a computer on your network that prevents you from accessing it until a
        ransom is paid

Even though business interruptions due to cyber attacks are relatively uncommon, being unprepared for one could prohibit you from doing business as usual. Contact Scirocco Group today to find out how we can help you avoid a business interruption.

Third-party interruptions can have a major effect on your business

You can still be affected even if it isn’t your business that experiences a cyber attack. Imagine what would happen if one of your vendors suffered an attack, resulting in a complete shutdown of its warehouse or website. Unfortunately, attacks on third parties are often out of your control. Such an event could have a profound effect on how much business you are able to do, and that would trickle down to your customers, who may rely on your products or services.

When you think about what usually causes a business interruption, natural disasters such as fires, earthquakes and floods probably come to mind first. These events can physically damage your property and equipment, making your workspace unusable for a time. The damages from Hurricane Katrina and Superstorm Sandy are great examples of how a natural disaster can put a halt to a business’ day-to-day operations. Many of those affected businesses remain closed to this day.

While natural disasters are still the main reason for an interruption, another cause is quickly moving up the ranks: cyber attacks. As businesses continue to rely on computers and digital storage of essential data, cyber attacks will continue to be a potential exposure. Read on to learn how a cyber attack could lead to a business interruption and what you can do to mitigate the risk.