Risks of Neglecting Good Cyber Practices and Cyber Liability Insurance

Jun 13, 2023 | Business, Fraud, News

A recent cyber incident involving the City of Oakland serves as a poignant example of the potential consequences of inadequate cyber liability coverage. The incident significantly disrupted critical city services, leading to substantial downtime and financial losses. Regrettably, the city did not account for the full extent of the impact when calculating the appropriate cyber liability coverage, leaving them exposed to substantial financial burdens.

This incident underscores the importance of accurately assessing potential losses and including all relevant factors when determining cyber liability insurance coverage. Organizations must consider not only immediate recovery costs, but also the long-term impacts on operations, reputation, and the potential for legal and regulatory repercussions.

In an era where cyber threats are becoming increasingly sophisticated and pervasive, adopting good cybersecurity practices, a fully developed Incident Response Plan, and obtaining proper cyber liability insurance are essential steps to safeguard operations and mitigate potential damages. The City of Oakland’s cyber incident serves as a stark reminder of the need for comprehensive coverage that accurately accounts for the potential downtime and loss of services.

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Our professionals have decades of expertise in numerous aspects of cybersecurity including security frameworks, risk transfer products, and threat evaluation. abip offers technical solutions that improve security postures by applying best practices to various industries and company sizes and remains dedicated to creating tailored solutions.

If you currently do not have a cybersecurity strategy and incident response plan in place or if you feel your current plan could be improved, contact Todd Ellis, Director of Cyber & Strategic Risk Services, at 281.519.2963 to setup an evaluation and begin the conversation.