Cyber Crime: Single Greatest Emerging Risk for Businesses

Leading Risk Managers report that cyber crime is the single biggest emerging risk for businesses

By Rob Foote, Roofing Risk Advisors, LLC

The news has been filled with reports of ransomware affecting large businesses in Europe and parts of the United States. A few months ago, the WannaCry virus was holding computers hostage and demanding a payment of $300 in Bitcoin, an internet currency.

Large businesses are not the only ones at risk. Every business uses internet-connected devices and solutions in their day-to-day operations that provide opportunities for hackers to take advantage. Laptops, smart phones, cloud-based project management and vendor management software can all be openings where a hacker can gain access. Recovery can be costly with loss of data and restoration expenses, notification and credit monitoring service fees, loss of income, business interruption, extortion and even theft.

Cyber Liability Insurance can provide protection for exposures related to the use of the internet. First-party coverage applies to costs incurred by the roofing contractor when responding to a covered event, while third-party coverage responds to claims and demands against the roofing contractor arising from covered events. Roofing Risk Advisers Cyber Program also provides a network of Cyber Crime Support Specialists to assist in a timely and appropriate response to any extortion or breach event.

The cost of cyber crime coverage is based on the contractors' annual revenue and technology system controls.

Rob Foote is a deeply experienced Insurance and Risk Management Advisor to the roofing industry, 15 year member of National Roofing Contractors Association (NRCA), and a director of the Florida Roofing & Sheet Metal Contractors Association (FRSA). For more information, contact the author at 954-609-0820 or go to www.roofingriskadvisors.com.