For years, Network Security Insurance (commonly referred to as Cyber Liability Coverage) was
widely regarded as a boutique coverage needed only by large corporations who store and
process large volumes of consumer credit card information. In the later part of the last decade,
however, this perception proved inaccurate when cyber-attacks on small to midsize businesses
and retailers increased nearly 600%. Cyber extortion targeting small businesses now reigns
supreme.
The good news is, Outdoor Sports Insurance has access to a wide array of insurance markets
that write cyber policies specifically for the small business owner. These policies are both
comprehensive in protection and breach response services, and affordable in premium.
Wrapped together with policies that cover the risks associated with snowboarding, surfing,
skateboarding or any board sport, Outdoor Sports Insurance knows the market and has the
products to fit any Board Retailer.
By definition, a “cyber attack”, or “security breach”, refers to unauthorized access to the IT
infrastructure of a company by a third party (hacker) with the intent to corrupt, steal, or destroy
data. The types of attacks hackers employ to achieve these ends runs a wide spectrum; Denial
of Service (DoS), Phishing attacks, Password attacks and cross-site scripting attacks are just a
few of the more common means by which hackers wreak havoc on a company’s network (and
subsequently the daily operation of the business itself).
The most common attack, and by far the most damaging in terms of financial impact to victims,
is the ransomware attack, commonly referred to as, “cyber extortion.” When a company has
been hit with a ransomware attack, malicious software infiltrates a portion, or all, of the
company’s IT mainframe. As malware increases in sophistication and complexity, so, too, do the
extortion demands made upon the targeted companies. Between 2019 and 2020 alone, the
number of companies that reported paying a ransomware extortion demand increased more
than 300%.
According to a NetDiligence 2020 Cyber Claims study, the total cost of a network breach ranges
anywhere from $1,000, to more than $120 million. The average cost to businesses with less
than 200 employees is estimated to be $200K – $750K. Between 2018 and 2020, it is estimated
that 45% of cyber-attacks targeted businesses with less than 200 employees. Less than 25% of
those businesses carried the proper network security coverage, and even fewer had a formal
incident response plan in place. Of the businesses impacted that did not carry the proper
protection, more than 60% were out of business within 6 months.
Outdoor Sports Insurance works across multiple carriers to make sure all board retail
businesses can find the right policy with the appropriate coverage at an affordable premium. In
addition to the coverage itself, Outdoor Sports Insurance supplements the policies with risk
management services and third party resources curated to ensure policy holders are equipped
with the tools to mitigate the threat of an attack, and expedite the response time should an
attack occur. Included in the coverage portfolio, policy holders have access to a 24/7 cyber
response hotline, educational tools to help network users identify threats and phishing
campaigns, recommendations for protective software implementations, and best practices for
user protocol of a business’s IT property and systems.
BRA note: We are very pleased to mention that Outdoor Sports Insurance is a BRA Supporting Vendor Partner. If you would like to be introduced via email to the solid people behind this outstanding resource, email me. – Doug Works, BRA Executive Director
If you are not yet a BRA Retail Member, you can easily opt in to either Regular (no cost) or Distinguished ($99/yr.) Membership via this super simple join form