Aug 29, 2023Why Cyber Coverage Is Crucial
The Cyber Risks of Today’s Digital World
Technological development leads to a multitude of societal advancements. Economies grow at rapid rates, and people around the world are all interconnected. Access to information increases such that anyone can find whatever they are looking for with a few clicks of a mouse. Businesses operate more efficiently and reach more potential customers. In many ways, the digital age makes life easier, but it comes at a cost, especially in relation to cyber risks.
This technological connectivity opens businesses and individuals up to new risks, as cybercriminals take advantage of vulnerabilities to access privileged information for financial gain. Even with the best cybersecurity measures, your clients will have difficulty staying ahead of the threats these criminals pose. Most businesses would benefit from cyber insurance to protect them from the increasing risks they face. Cybercrimes are likely to continue rising as several related threats converge over the next few years, leaving companies more vulnerable to data breaches. Here are two primary threats that could cause catastrophic damage in the coming years.
Expansion of Invasive Technology
Technology has moved well beyond data storage on individual computers. With the development of “smart” technology, cameras, sensors, and other invasive devices are being installed in homes, businesses, and public spaces. These devices gather information from the physical world and send it to the digital world, constantly feeding it personal and potentially sensitive information. Cyberattacks on these systems threaten individual privacy and safety, with potentially dire consequences for businesses.
Crumbling Infrastructure Issues
In February of 2021, Texas experienced a winter storm that had a catastrophic impact on infrastructure statewide. It is a prime example of what can happen when an aging or ill-equipped infrastructure meets a natural disaster. Multiple systems failed, leaving people and businesses without power or water in the middle of extreme cold and a major snowstorm because the primary energy consortium in the state was not prepared for a disaster that should have been foreseen.
Natural disasters are not the only threat to infrastructure security. Your clients need to be aware of the potential for threats of malicious intent. Also in February, cybercriminals attacked a water treatment plant in Florida, intending to poison the water supply and harm citizens. These incidents demonstrate that privileged data and information is not the only thing at stake in the digital age. Infrastructure vulnerabilities leave them open to disruptions and the risk of an attack designed to harm people or cripple operations.
Inform Your Clients About Cyber Insurance Options
Technology is catapulting into a future filled with the contrasts of progress and increased risks. Your clients need to be prepared with cyber insurance that works for their business. Make sure they know about the types of cyber insurance available to them, including:
- Liability coverages
- Fraud prevention and response
- Extortion coverage
- System disruption protection
- Data recovery protection
- Forensic/legal coverage
About Tangram Insurance Services
Located across the Golden Gate Bridge, just outside of San Francisco, Tangram Insurance Services is a full-service Managing General Underwriter and Program Manager offering specialty programs. We focus on industry-relevant coverage, competitive pricing, and practical business and risk management solutions for your clients. Since we are not all things to all people, we make sure to create outstanding custom-built solutions that matter to those businesses, and the brokers who serve those industries. Contact us at (888) 744-9810.