According to Statista data, the annual cost of cybercrime has risen 972 percent, increasing from $860 million in 2018 to $9.22 trillion in 2023. Businesses are increasingly reliant on virtual systems, and with that connectivity comes cyber-risk.
Trucking companies are not immune to this risk. In fact, since Acuity began offering cyber coverage, two of three most costly cyber claims have occurred in the trucking sector. This includes our most expensive cyber claim, a ransomware event that cost over $350,000. Without cyber insurance coverage, the company would have had to find a way to absorb that substantial financial cost. With trucking companies operating on thin margins, such a significant loss could put some operations out of business.
REDUCING YOUR RISK
According to Ryan Wessels, cyber security director at Acuity, the following insights help to manage your cyber security risk.
Keep your systems updated
Criminals are looking for opportunities to enter your systems. Once they find them, they exploit those vulnerabilities to extract data and disrupt operations. To combat this, software providers also search their own systems for vulnerabilities and send updates to their products to keep criminals out.
If you aren’t making updates, the changes they’re making aren’t applied to your systems, leaving your information vulnerable. Make sure your employees are applying updates. Taking the extra few minutes to run updates, even if it means delaying work a bit, is an important way to help keep cybercriminals out.
Use secure passwords
According to a 2019 Google/Harris Poll, only 34 percent of U.S. adults regularly changed their passwords and 13 percent use the same password for every account.
While it may not be popular with employees, it’s best to force a password change regularly. If your employees use the same password in your system as on other websites, and that password is compromised, bad actors can access your systems as well. Forcing a password change can help reduce the likelihood of your systems being accessed if credentials are compromised.
Set up multifactor authentication (MFA)
Multifactor authentication adds an extra layer of security. One common form of MFA is entering a code from your phone. This additional authentication can help protect your business from unauthorized access by requiring a second step before logging into your system.
Use immutable backups
Having your data backed up outside of your current network may allow you to get back to work faster after a cyberattack occurs. If your system is exposed to ransomware, you can use a backup instead of having to pay the ransom.
It’s important that those backups are immutable, which means they are unable to be modified after creation. That way, if criminals access your backup files, they are not able to delete or encrypt them.
Train your staff on cyber best practices
Do you know how you would respond if an attack occurred? Who has access to the backup information? Do your employees know how to avoid phishing attempts? Do they know what to do if they open a suspicious file? Having regular training on best practices can help reduce the likelihood of a cyber loss and show them you’re taking data seriously.
Find trusted experts
Establish relationships with experts who know how to respond before an event happens. Your insurance company can be a resource to help you prepare for a cyberattack and connect you with experts who can help with recovery.
CYBER INSURANCE’S ROLE
Insurance can protect your livelihood when prevention falls short and cyber insurance provides benefits with both prevention and recovery. Cyber insurance provides coverage for a broad range of losses. Coverages can vary between carriers, so it’s important to check what your policy includes. Some coverages to check for include:
Misdirected payment fraud
Responds to a situation where the insured or insured’s bank has been deceived into sending money to a fraudulent destination.
Computer fraud
Responds to a situation where an unauthorized party gains access to a business’ computer system and enters or alters data. Pays for direct financial loss.
Data Compromise Response Expenses
Provides resources needed to respond to a breach of personal information. Pays for things such as forensic IT, breach notification, credit monitoring, and legal counsel.
Identity recovery
Provides owners of the insured’s business with case management services and financial resources to recover control of their identities after an identity theft. Pays for things such as legal expenses, lost wages, and case management.
Cyber extortion
Helps a business respond to an extortion threat. Pays for things such as investigator costs and approved payments for eliminating credible ransomware.
Computer attack
Responds to a computer attack that damages data and systems. Pays for things such as data restoration and system restoration costs due to attack, and PR services.
Network security liability
Provides defense and settlement costs in the event of a lawsuit alleging that a system security failure on the part of the insured caused damage to a third party.
Electronic media liability
Provides defense and settlement costs in the event of a lawsuit alleging that information displayed by the insured on a website caused damage to a third party.
Data compromise liability
Provides defense and settlement costs in the event of a lawsuit related to a breach of personal information.
Additionally, your business may rely on your IT department and an attorney for proactive cyber security and legal matters, but these teams may not be experts in reacting to a cyber event. In the event of a data breach, cyber insurance gives businesses access to experts who handle things like system restoration, legal matters and public relations.
As cyberthreats continue to evolve, protecting your trucking company with cyber insurance is essential. This coverage not only acts as a safety net against potential financial losses but also complements proactive measures. An independent insurance agent is a great place to start a conversation about your cyber insurance needs.
About the Author
Brittney Passini is the director of commercial lines product development at Acuity Insurance. She works with cross-functional teams to identify market trends and develop innovative products, services and coverages that meet the evolving needs of commercial insurance policyowners.
