“Cyber risk” is a relatively new term, and one that can strike terror in the heart of nearly anyone. To a business, the losses can be astronomical, including not only the obvious financial ones, but also loss of sensitive data, protected information, and even reputation. Affected third parties often bring lawsuits, too, in an attempt to recover their own losses from the breach. Damage from a cyber attack can take months to repair.
Many people aren’t entirely sure what constitutes such a breach. Here’s a list of some common forms of cyber risk:
- Sensitive information stolen by a hacker or inadvertently disclosed, including Social Security numbers, credit card numbers, driver’s license information, PIN numbers, employee ID numbers, and all sensitive business data such as trade secrets and customer information;
- Business interruption due to a network being hacked;
- Costs incurred from damage caused by a hacker;
- Damage caused by worms, viruses, and other malicious computer code introduced to a network;
- Human error that leads to disclosure of sensitive material, including financial data, personal data, and even things like e-mails having unintended recipients if they disclose such sensitive material;
- Costs incurred from dealing with the breach;
- Damage to reputation;
- Lawsuits incurred from the breach.
This is serious stuff, and the threat is only going to continue to grow. Find out more by contacting an insurer who offers cyber risk insurance.