Top Cyber Concerns & Coverage Needed by Tech Companies

In today’s digital age, businesses across many sectors must be wary of cyber concerns, risks and exposures. This may be particularly relevant for tech companies that rely heavily on digital solutions. These businesses face an ever-evolving landscape of cyber threats and, as these threats become more sophisticated, it is crucial for businesses to stay informed and protected.

What Are Some Top Cyber Threats for Tech Companies?

Cyber threats are constantly evolving and changing, but some of the most prevalent for tech companies to consider may include the following:

• Ransomware attacks—Ransomware remains one of the most prevalent cyber threats. Attackers can encrypt a company’s data and demand a ransom for its release. They may also blackmail businesses and threaten to expose sensitive data.

• Phishing scams—Phishing attacks involve tricking employees into revealing sensitive information, such as login credentials or financial details, through deceptive emails or websites. These scams can compromise company data and lead to unauthorized access.

• Supply chain attacks—Cybercriminals may use a business’s partners and vendors to reach their target. Hackers can learn who a company works with and identify a weak link in supply chains, potentially allowing them to penetrate systems or access sensitive data.

• Advanced persistent threats (APTs)—APTs are prolonged and targeted cyberattacks where attackers may gain unauthorized access to a network and remain undetected for an extended period while stealing data or disrupting operations.

How Can Insurance Help Protect These Businesses?

Cyber insurance, also known as cyber liability insurance, is a vital tool for tech companies to manage and mitigate cyber risks. Businesses with appropriate coverage may enjoy the following benefits:

• Financial protection—Cyber insurance can cover many costs associated with data breaches, including lost or reduced revenue, notification expenses and credit monitoring for affected individuals.

• Incident response—Many cyber insurance policies include access to incident response teams that can help companies quickly contain and remediate cyber incidents. This can minimize damage and reduce downtime.

• Liability coverage—Cyber insurance can provide coverage for third-party claims resulting from data breaches, such as lawsuits filed by customers or partners whose data was compromised. This can help protect the company’s reputation and financial stability.

• Regulatory compliance—With the increasing number of data protection regulations, cyber insurance can assist companies in meeting compliance requirements by covering fines and penalties associated with regulatory breaches.

We’re Here to Help

Contact Silicon Valley Risk & Insurance Services today to learn more about cyber concerns and how businesses can address them with appropriate coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.