Can you believe that 2.53 million people fell victim to cybercrime in 2016 in the United Arab Emirates alone? Did you know that there was a 2017 official report on cybercrime? This report estimated that cybercrime would cost $6 trillion annually by 2021. We live in an exponentially advancing technology. We use that technology to store data and make our lives easier, but as much as we enjoy these technological benefits, risks are still as relevant as ever.
Companies must embrace technology if they do not want to be left behind in their industry, but they must also be aware of the risks that come with technology. If they do not, well, the following companies lost millions of dollars because of these risks.
- Adobe – In October 2013, Adobe reported that hackers had breached their security. They stole almost 3 million encrypted customer credit card records. By November 2016, Adobe paid a total amount of $1 million to affected customers.
- National Health Service. – In 2017, a malware named “wannacry” was used to attack this publicly funded health care system. The Department of Health and Social Care (DHSC) estimated that the NHS lost $99.9 million. These losses were counted from the direct costs and lost output because of this malware.
- Travelex – A ransomware gang called “Sodinokibi” attacked Travelex on the new year’s eve of 2019. They want Travelex to pay them $6 million. Sources from the Wall Street Journal reported on April 10, 2020, that Travelex shelled out $2.3 million as ransom.
Cyberattack is the biggest risk for Energy companies
The supply of oil, gas, and energy right now is abundant. The lower demand caused by the pandemic has increased the stored reserves. Consequently, the biggest energy issue this industry faces now is not the supply but cyber-attack. Blackmail is one of the main purposes of a cyber-attack. Another reason is theft of information. This information includes market conditions, corporate plans, and bidding strategies.
Unfortunately, cyberattacks seem to be just a minor agenda for companies, and if something goes wrong, it will be too late for them. The oil and gas industry are particularly at risk because of their economic and social importance.
How cyber liability insurance helps companies
Cyber liability insurance addresses the financial aftermath of a cyberattack. It also tackles another type of data breach that occurs with data on the company’s systems. It pays for the costs of:
- Investigation of the breach
- Notifying customers and regulators
- Managing the ensuing crisis
- Credit monitoring to affected individuals
- Public relations and reputational costs
Unreliable Software can do more harm than good.
It is easier and more efficient for large companies to use advanced software. These programs will provide better and faster service than your conventional workers, but if you choose an unreliable software service, you are in for potential losses.
Unreliability of software can include:
- Breach of Warranty. You failed to deliver on a promise you made in a warranty
- Breach of Contract. One party did not meet its obligation on the contract agreed upon
- Fraud. Intentional lie or deception of one party to another for financial or personal gain
- Negligence. One party harms a person or entity due to a lack of care
- Misrepresentation. One party makes a false claim to entice another into agreeing to the terms of a contract.
How Technology Errors and Omissions protect your company
This insurance protects a company that makes a mistake or forgets to do a critical task that hurts a client financially. When a client sues to recover losses, technology errors and omissions insurance will cover for a company’s legal expenses, including:
- Attorney’s fees
- Court costs
- Money paid to settle a lawsuit
- Legal judgments
- Related costs, such as court and expert witness fees
Don’t know who to trust?
The financial risks due to cybercrime and technology errors are very real. So the big question now is what are you going to do? You might be asking, “Are these risks real, what can I do to mitigate them?” The simplest way to mitigate them is to go for an insurance company. You should choose an insurance company that specializes in technology risks.
Here are three insurance companies you should consider:
- Chubb LTD – A report from ratings agency AM Best says the company wrote $325.8 million in cyber insurance coverage in 2018. This puts Chubb LTD far ahead of AXA XL’s $255.9 million.
- American International Group – In 2018, AIG won the Adviser Cyber Risk Innovation of the Year award for CyberMatics.
- CNA Financial Corp – This company boasts a “three-pronged” approach to cybersecurity preparedness. It is part of their CyberPrep program designed to benefit their customers.
There are more insurance companies for cyber risks. These are just three of the most trusted insurance agencies worldwide. Did you ever experience problems with hackers? How protected do you think you are right now? Get the most out of any insurances using the most trusted COI Tracker today.