Today’s world is becoming increasingly reliant on technological developments so it’s no surprise that businesses are adopting new technologies to keep up with the pace. E-Commerce, email marketing, social media and cloud storage are the new normal and businesses are often expected to join the bandwagon if they’re serious about survival. But with the perks of new technologies also comes new risks.
Just how big is the risk? That largely depends on your business and much it uses technological equipment. However, nearly half of all businesses report up to five cyber risks, which can include exposure to viruses and hackers, theft of computer equipment and internal fraud. Additionally, over a third of all businesses experienced a data breach last year.
That goes to show that all businesses, no matter how many firewalls you’ve installed, have cyber risks. Businesses that don’t heavily rely on computers may find that general liability coverage will suffice, while businesses that need computers to thrive may require more substantial coverage. Cyber liability insurance offers protection for such businesses, which can include online retailers and marketers, technology companies, financial institutions, healthcare professionals, schools/universities and law firms. Cyber liability insurance is designed to protect businesses from a loss of information, which includes sensitive customer data.
Cyber risks extend beyond attacks from hackers. They also involve the following:
Destructive weather, such as lightning that causes power surges, can damage computer equipment that contains sensitive information.
Unintentional accidents involving computers can have dire consequences, such as leaving a work laptop at a cafe, resulting in an information leak.
Illegal criminal activity can be committed by both external hackers and even internal persons.
These accidents or attacks can be extremely costly, with expenses involving retrieving lost or stolen data, creating safer online practices and performing cleanup efforts on behalf of compromised customers. The right coverage can be the difference between re-opening your doors or keeping them closed forever if a cyber liability event occurs.
Protect your business’ digital assets today. Call us at (208) 365-2160for more information on Boise business insurance.
FAQ’s About Today’s High-Tech World Creates New Risks for Businesses
What are the new risks for businesses in today’s high-tech world?
In today’s high-tech environment, businesses face several new risks including cyber-attacks, data breaches, software malfunctions, intellectual property theft, and the challenges of remote work security. Additionally, there’s the risk of business interruption due to technology failures and the potential for reputational damage from online activity.
How can businesses protect themselves from cyber-attacks?
Businesses can protect themselves from cyber-attacks by implementing robust cybersecurity measures such as firewalls, anti-virus software, regular security audits, employee training on security best practices, and incident response plans. It’s also important to keep all software up-to-date and to use secure passwords and multi-factor authentication.
What should a company do in the event of a data breach?
In the event of a data breach, a company should immediately activate its incident response plan, assess the extent of the breach, secure its systems to prevent further unauthorized access, notify affected parties as required by law, and work with cybersecurity professionals to investigate the breach and prevent future incidents.
Are there specific insurance products that cover technology-related risks?
Yes, there are insurance products designed to cover technology-related risks, such as cyber liability insurance, which can provide coverage for costs associated with data breaches, ransomware attacks, and network damage. Other relevant policies may include errors and omissions insurance and business interruption insurance.
What is the importance of employee training in managing tech risks?
Employee training is crucial in managing tech risks as human error is often a significant factor in security breaches. Regular training can keep employees aware of the latest threats, teach them how to recognize phishing attempts, and ensure they follow company policies regarding data protection and device usage.
Can implementing a remote work policy increase a company’s tech risks?
Implementing a remote work policy can increase a company’s tech risks if not managed properly. Remote work can lead to increased chances of unauthorized access, insecure networks, and data loss. Companies should establish secure remote work protocols, use VPNs, and ensure that remote devices are as secure as those in the office.
How do software malfunctions pose a risk to businesses?
Software malfunctions can disrupt business operations, lead to data loss or corruption, and cause financial loss due to downtime. To mitigate these risks, businesses should invest in reliable software solutions, regularly back up data, and have a disaster recovery plan in place. It’s also important to conduct routine software updates and maintenance.
What steps can businesses take to protect their intellectual property online?
To protect intellectual property online, businesses should use legal tools such as copyrights, trademarks, and patents. They should also employ technical measures like digital rights management (DRM), encryption, and access controls to safeguard their digital assets. Additionally, monitoring the internet for unauthorized use and promptly enforcing IP rights is essential.
How does technology change the landscape of business interruption?
Technology has increased the potential for business interruption due to its integral role in operations. System outages, cyber-attacks, or technology failures can halt business activities. To prepare, businesses should have business interruption insurance and continuity plans that include technology recovery strategies.
What role does a company’s online reputation play in its overall risk management?
A company’s online reputation is vital to its success and can be quickly damaged by negative reviews, social media incidents, or data breaches. Effective risk management includes actively monitoring online presence, engaging with customers positively, and responding swiftly to any reputational threats. Reputation insurance can also be part of a comprehensive risk management strategy.