Accounting & Auditing Blog

Cybercrime: Will Your Business Insurance Protect You From Jesse James?

Insurance. We’re all familiar with personal, health and automotive coverage and what happens when we have too little coverage or discover too late that what we thought was covered was not as it seemed. However, the details of business insurance are often an after-thought—and typically only when a business or its daily operations have been compromised. Today, online advances have made work environments much more efficient, effective and productive. However, with the convenience and increased efficiency that new technology brings, there is also greater risk of falling prey to those with sinister motives:  cybercriminals.

The cybercriminal is the modern day Jesse James of the business world; the effects of cybercrimes can be devastating to a business. Much like the spirit of the old-day outlaw who helped define the Wild West, a hacker can easily take down a business with a few clicks of a mouse.

What are some of the more common cybercrimes, and what solutions can be put in place to mitigate the damage they can cause?  First, we must define the most prevalent forms of cybercrime:

  • Identity theft (yes, this can happen to a business)
  • Theft of confidential data (the breach of credit card information with Target last month and now, Neiman Marcus)
  • Theft of intellectual property (e.g. blueprints, manufacturing plans, and other proprietary information)

What are two of the most immediate and easy-to-implement actions a business can take to mitigate the damage that cybercrimes can cause?

  • One solution is to have your privacy and security policies and controls reviewed through a vulnerability assessment. This assessment will help you manage your IT security, identify critical holes in your IT environment and prioritize identified holes to help you remedy the ones that can cause the most damage.  Skoda Minotti offers these services; contact us to find out how we can assist you.
  • It is also critical to have the proper amount of business insurance coverage.  Determine that you have adequate business insurance coverage, including business interruption insurance and liability coverage, in addition to property and casualty insurance.

Most cybercrimes have a financial motivation behind them, so it’s important to assess your business insurance coverage to ensure that you can recover any potential financial damage that may occur. Updating or assessing your coverage at least annually, and determining the adequacy of that coverage, will provide your business with peace of mind knowing that you are covered in the event of a cyber-attack.

What can you do if you realize your business has been the target of a cybercrime?

  • Stop the bleed – determine what caused the crime
  • Identify what has been compromised
  • Initiate damage control through public relations and communications to those affected by the crime against your business

If you have questions about your insurance coverage, threats affecting your business or if your business insurance coverage is sufficient to withstand today’s technology-driven risks, call us at 440-449-6800 to start the conversation.

Looking for additional ways to grow your business or personal wealth? Visit us at www.skodaminotti.com or download any or all of our free marketing  or financial e-books.

We also invite you to stay up-to-date with the latest business trends, tips and revenue generating ideas affecting you and your business today by subscribing to the  Skoda Minotti Blog or by following us on LinkedIn, Twitter @skodaminotti, and Facebook or simply contact us at any one of our four office locations:  ClevelandAkronWestlake or  Tampa.

 

FREE OFFER: Learn what you can do to reduce your risk of threats to your business. Download our fraud E-book: A Corporate Executive’s Roadmap to Fraud Prevention.

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