Cyber Breaches and the Threat of Reputational Damage

Axis insurance agency

Companies are constantly under attack from individuals and entities attempting to breach their networks. For the most part, their aim is to search for personal information that can be resold to criminals who wish to access bank accounts or commit identity fraud. The risks to businesses of being involved in a data loss incident are now higher than ever and cyber crimes are becoming a common issue that most businesses need to address.

Insurance is now widely available to everyone, with policies that provide for all sorts of contingencies, so that anyone concerned about hackers and wants the ability to respond to most cyber risks, including data breaches, has access to coverage. There are companies that still choose not to invest in this valuable coverage, which may come at great risk. Having cyber policies through Axis insurance agency provides coverage to help restore a business that has been attacked and help them to rebuild their damaged reputation.

Understanding the policy features

Some cyber risk policies help cover the cost of a comprehensive security program. Cybersecurity policies can range in size, from a single one-sheet overview for user awareness, to a document containing several pages that covers everything vital to network security. Not having coverage could lead to fines or penalties, as well as periodic audits that could be required for several years after a data breach.

There are also many effective risk management techniques that businesses can implement to reduce the chance that a data breach will occur. According to the Ponemon Institute L.L.C., the average cost of a data breach is around $225.00 per record, including notification, credit monitoring, defense, forensics, call center services to handle inquiries from affected customers and the cost of engaging a public relations firm to handle the crisis.

Heightened security is the best defense

Consider the fact that, if a foreign government has obtained viable information, putting it back in place still does nothing to restore any reputational damage that has occurred. All businesses should have robust data security measures. In addition, it helps greatly to have effective training for all staff that handles customer data. This will further help them to understand what their responsibilities are.

Your cybersecurity policy should clearly communicate best practices for users in order to limit the potential for attacks and ameliorate the damage. Protective measures against cyber risk, including policies from Axis insurance agency that address your specific needs, should be your number one priority.