Cyber insurance was virtually unheard of just a decade ago, but it is fairly common today. Cryptocurrencies and the blockchain technology that makes them possible have given hackers and scammers a new way to demand payment, and this has made ransomware attacks worryingly common. Even computer systems protected by advanced security measures and sophisticated encryption have been attacked successfully, and most experts believe that the problem will only get worse in the years ahead. Having cyber security in place is also key.
What Is Cyber Insurance?
Cyber insurance fills gaps in a general liability policy and covers some or all of the costs of recovering from a hack or breach. These policies may cover the costs of:
Attorneys and litigation
Notifying customers and vendors about a data breach
Recovering data compromised during a breach
Repairing damaged and infected computer systems
Restoring personal stolen by hackers
Income lost during a cyber attack
Some cyber policies will pay the sum hackers demand in a ransomware attack, but most will not. Insurance companies work closely with law enforcement, and law enforcement is steadfastly against paying ransoms. The insurance companies that offer cyber insurance work with their clients to make computer systems less vulnerable to hackers, and they provide their clients with assistance after an attack to get their businesses up and running again.
Why You Should Invest in Cyber Insurance As a Trucker
Investing in cyber insurance is a good idea because data breaches and hacks can be extremely costly. When one of the nation’s largest private freight companies was the victim of a ransomware attack in October 2023, it listened to law enforcement and refused to pay the hackers. The company was able to get its operations up and running again in less than three weeks, but it lost millions of dollars in business and many of its oldest customers. It also had to foot the bill for providing its customers with a year of credit monitoring and fraud protection services. These are the kinds of costs that would be covered by a cyber insurance policy.
The Role of Cybersecurity in the Trucking Industry
The trucking industry is especially vulnerable to cyber attacks because hackers may target commercial vehicle electronics systems as well as office networks. Navigation and driver and vehicle monitoring systems are all connected to the internet, and they give hackers several ways to gain access and cause damage. Shutting down a fleet of commercial vehicles could be even more damaging to a logistics company than losing its office computer system, and the mayhem that a hacker could cause with an 80,000-pound vehicle doesn’t bear thinking about.
Peace of Mind
The information age has created many new opportunities, and it has also given rise to a new range of threats. Worms, viruses and ransomware are the weapons criminals now use to commit fraud and extortion, but every new threat leads to a new solution. Cyber insurance providers can help protect trucking companies against cyber attacks and cover their losses if a breach does occur, and that provides both trucking companies and their customers with peace of mind.