When it comes to cyber attacks, the financial sector is one of the more susceptible industries. The motivation should be obvious—there can be a lot of sensitive and important information on banking company servers. Between a denial-of-service attack and a phishing scam, a private bank, mortgage lender or FinTech firm could wind up inadvertently giving away or losing customer financial records, internal financial data or stock market information. Because of this dilemma, cyber security and cyber liability insurance coverage should be strongly encouraged. FGIB offers this coverage to business of all sizes.
Determine Appropriate Coverage
Financial services companies should stay away from any one-size-fits-all cyber liability coverage. The appropriate level of coverage can be determined by risk and possible overlapping coverage from other insurance policies. When considering risk, companies should consider these four categories:
- Accidental or inattentive security interruption by employee or vendor.
- Possible flaw in internal software or hardware that allows for data loss.
- Intentional attacks by outside agitators looking to cause harm.
- A webmaster using trademarked material inappropriately or breaching third-party websites, regardless of intent.
Coverage for Losses
If a company is the victim in a cyber attack, there are generally two types of compensation. If the company needs to directly pay expenses surrounding the circumstances of a breach, this is called a “first-party loss.” If the monetary loss is on behalf of a customer, the payout is considered a “third-party loss.”
FGIB has expert insurance brokers ready to work with companies to assess their risks for cyber attack.