Brett, chief financial officer of a small shop of the machine, was concerned about the financial losses that the company could incur a recent? cyber attack. The company's systems have been infected by a computer virus and was trying to resolve it.
Worse, the virus had caused several large, specialized machining tools business to fail, and it began to look like some of the machines have been permanently damaged. The machines should be replaced and many of the machines were imported from abroad, which meant they could not be replaced quickly. With the fourth quarter approach - the busiest time of the year - Brett was worried about the impact all this would have on sales and net income
Perhaps worst of all, Brett had shot down the suggestion that buying the company. cyber insurance coverage. He felt that the "big guys" needed the blanket and he was trying to save the company some money.
called Jim Brett, CEO, to relay the bad news on damaged machines. "It looks like business interruption request," said Jim. "Is our business interruption cover this loss of form because it was caused by a cyber attack? We do not have to cyber insurance coverage, are we doing? "Brett did not know what to say ....
An activity interrupt request can be very damaging to a company, leading to lost earnings and additional costs. Worse, a form standard business interruption may not be of much help if the cause of the loss is a cyber attack. in fact, a standard form of business interruption can pay a nominal amount (as little as 2500 $) if the cause of the loss is the interruption of IT operations. most forms of business interruption require "direct physical loss or damage" to trigger the coverage of operating losses. If a cyber event triggers your business interruption claim and you do not have a cyber insurance coverage, you may be left without coverage.
for these reasons, it is essential that your business cyber insurance coverage which includes transportation cover operating losses. Without it, your business is vulnerable to business income claims and losses that are triggered by a cyber attack. As Brett discovered the cyber insurance coverage is not only the "great". The truth is, small and medium enterprises are the most common targets of cyber attacks.
Tell your independent insurance agent about your risk of cyber attack and how you can protect your business with cyber insurance with coverage of operating losses.
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