Over the years, technology has become increasingly engrained in workplaces of all sizes and across all sectors. Email may have once seemed like a revolutionary integration, but it is now a standard staple of most companies’ communication processes. However, while email and instant messaging programs may seem like nothing new, they continue to be a source of significant cyber risks. Such services can be simple delivery systems for a common scheme used by cybercriminals: phishing.

What Is Phishing?

Phishing attacks are among the most frequently encountered types of cyber incidents. In a phishing scam, the perpetrator sends an email or instant message to an individual or business with the goal of breaching systems or otherwise accessing sensitive information. In many cases, a phishing email may try to convince the recipient to click on a malicious link or download an attachment infected with malware. Additionally, they may request that targets respond with or otherwise provide personal and sensitive information, such as login credentials, banking information and social security numbers.

How Can Insurance Help With Phishing?

With heightened digital risks and exposures comes an accompanying need for appropriate loss control measures. That’s why cyber insurance, also known as cyber liability insurance, has become a staple of many businesses’ coverage portfolios. While policies cannot directly defend businesses against phishing or prevent employees from falling for schemes, they may assist with the financial fallout, such as by helping to pay for the following:

• Incident response costs, such as notifying parties whose data may have been compromised
• Business interruption losses, such as recouping revenue that would have been earned if not for a data breach disrupting normal functions
• Noncompliance fines, such as those issued by regulatory agencies
• Reputational rehabilitation, such as if a business enlists the assistance of a public relations firm following a data breach
• Legal expenses, such as attorney fees, settlements and judgments following lawsuits filed by affected parties

Get the Right Coverage

Contact Lupton & Luce today to learn more about coverage options for responding to phishing attacks.

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.