Think Your Vendor Will Protect You From Cyber Attack? Think Again…

Many of our clients have told us that they believe their 3rd party vendors would cover them against cyber attacks…..we always tell them, they’re wrong, and they’re putting their businesses at risk. The Sweet Life Beverage Company’s story here discusses the devastation faced when a company is cyber attacked. Their battle to recover from a “cyberworm” attack from the outside affected their market perception, and worse, tainted their customers’ trust. Sweet Life’s cyber, crime and property insurance policies all responded, although not to the degree that every loss was covered, and their loss of market share is something no insurance policy can protect against. Lessons to be learned? Cyber risk is a reality today, and proper risk management is a necessity for any business. It’s a matter of when, not if, a cyber attack will happen to your business, so make an incident response plan, and analyze how your company’s crime, cyber, and property insurance will all respond in the event of a loss.