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Is your technology property covered from Cyber damage?

Image of cyber hacker on computer

Technology such as computers and servers is a key factor in running any successful business. But did you know that cybercrime is not limited to just computers and servers? What happens if your employees’ cell phone with confidential customer information gets stolen? Or if your credit card machine gets hacked? What about your email and laptops? Protection of these assets is bundled under the term cybersecurity and entails the protection of technology systems from the theft or damage to hardware, software, or electronic data.


A physical cyber attack is a security breach in cyberspace which negatively affects the physical machines and systems that rely on affected computers; including industrial controls, self-driving vehicles, utilities, medical devices, electrical power plants. Cyber-attacks can cause physical damage you may not have even considered possible. For example, cybercriminals can take control of your smart devices such as thermostats, smart stoves, dishwashers, and washing machines. What happens if a manufacturing plant had their equipment in operation when someone was cleaning it?   Or if a sprinkler was triggered automatically through a cyber-attack and flooded out a building? What if a cyber-attack turned off the power causing food spoilage to every supermarket and restaurant in town? As you see, cyber security awareness is key.


With so many different computer and server confidential data breeches via cybersecurity threats such as phishing scams, Malware, including spyware, ransomware, viruses, and worms, Man-in-the-middle attacks, Denial-of-service attacks (DoS), SQL injection and Zero-day exploit, IT professionals and business owners and homeowners must take every precaution to ensure this risk is mitigated.

In addition, Cyber Security business interruption claims due to data breach, security failure, or extortion threat continue to rise. Cyber-attacks threaten a businesses’ operations and ultimately the bottom line as hours or even months of productivity and wages are affected. Therefore, business owners must be wary of the cybersecurity coverage they carry within their property insurance policy.

Cybersecurity property insurance property coverage typically includes breach costs, cyber extortion costs, and data recovery and applies to incidents reported during the policy period. Coverage also includes business interruption including income loss and extra expense sustained during the period of restoration directly due to the total or partial interruption of the insured organization’s business for a period greater than the waiting period.

Cybersecurity property insurance claims are complex in nature, often requiring the expertise of a gamut of experts, including IT, legal, forensics, call center, and credit or identity experts. You must also ensure to have proper coverage as Business interruption in standard business property policies related to a cyber event may be excluded or limited.  


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