75% of small businesses are underinsured. A big part of this equation? The lack of an adequate cyber liability policy. One out of three small businesses will end up closing within six months after a single cyber-attack. As insurance professionals, we must educate, prepare, and protect small business owners against cyber attacks. October is Cyber Security Awareness Month, a pivotal time for the cyber insurance industry. Pathpoint and At-Bay have joined forces to empower agents to safeguard their small business clients against the mounting menace of cyber-attacks. This week, we take a look into why contractors need cyber insurance
Contractors are prime targets for phishing and ransomware attacks. Far too many small businesses (SMBs) believe that they are not targets for cyber-attacks, often not seeing value in purchasing cyber insurance, and many contractors are no different. It is a myth that cyber insurance is only for companies that work heavily with computers, like an IT company- any company that utilizes email, a website, computers, or mobile devices is at risk for a cyber-attack.
Since many construction companies think that they aren’t at risk for a cyber-attack, they don’t properly invest in cybersecurity tools and/or use outdated, end-of-life systems, making them easy targets. They also have valuable infrastructure and intellectual property information which makes them desirable targets to cyber criminals.
The Most Common Cyber Risks for Contractors
- Ransomware: A roofing company has an open communication portal for bill pay and construction management projects and discovers widespread encryption across their network, locking them out of their entire system. They receive an initial demand of $3M to regain access.
- Business email compromise: An attacker accesses the email account of a landscaping company’s employee and sends fraudulent wire instructions to a client. The client pays the $50K invoice.
- Social engineering: A commercial project contractor receives an email claiming to be one of the company’s subcontractors. The email claims to have issues with receiving check payments and requests payments to be sent to a different address. The contractor sends a $200K check, only to find out later that the instructions were fraudulent.
Add Cyber Liability Easily
Cyber insurance protects businesses from significant financial loss in the event of a cyber incident and helps them get back on their feet. At-Bay offers instants quotes for standalone cyber coverage through Pathpoint for businesses with up to $100M in revenue and limits up to $3M. And the best part about choosing an At-Bay cyber policy is that At-Bay policyholders are up to five times less likely than the industry average to experience a ransomware attack. Upload any ACORD at Pathpoint.com and receive bindable At-Bay quotes in minutes. Ready to get a cyber quote from At-Bay through Pathpoint?
Cyber Liability Resources and Rewards
Cybercriminals are evolving and changing their strategies daily, so insurance agents must keep current on the latest in security, scams, and insurance. At-Bay provides multiple resources to insurance agents:
- Oct 10, Cyber CE Educational Webinar: Join At-Bay for the one-hour CE webinar titled Fundamentals of Cyber Insurance on Thursday, 10/10 @ 11 AM PST / 2 PM EST. This course provides 1 CE credit* in select states and provides attendees with an overview of cyber risk and insurance. Register by clicking this link. *1 CE credit available in AL, CA, FL, GA, IL, MD, MA, MI, MN, NJ, NY, NC, PA, TN, TX, and WA.
- Pathpoint/At-Bay Cyber Bind Incentive: In celebration of Cyber Security Awareness Month, Paithpoint and At-Bay are rewarding agents for any cyber binds completed at Pathpoint.com. From October 1st to October 31st, agents can earn a $50 Amazon.com gift card for every new business cyber binder. Learn more!