February’s article spoke to the affordable value of a legal expense policy and how commonly it is overlooked.
Similarly, cyber insurance is coverage that many companies often don’t know they need and is priced fairly when compared to the potential magnitude of a cyber-related loss. As seen with 2020’s ransomware attacks on Canadian trucking company Manitoulin, the transportation industry is just as vulnerable as any other industry.
As the transportation and trucking industry moves towards using digital infrastructure and platforms for their operations, cyber-attacks are a growing threat. However, even if your company only uses computers or the internet to conduct basic business operations like quoting, invoicing, planning, or transacting payments, a cyber-attack could cost your company valuable resources, time and damage your reputation and possibly cause financial ruin... This is why it is important for business owners to understand their vulnerabilities and mitigate losses through risk management strategies like insurance.
For example, if an employee accidentally opens a file or clicks on a link from an email containing ransomware, the ransomware could take over the company’s server and restrict access to valuable data and systems needed to run the business. Quite often, hackers install different software once in to gain multiple days if not months’ worth of data.
Once vulnerable, the hacker could strong-arm the transportation company into handing over a large sum of money or even use the carrier’s identity to steal money from their freight brokers or access the company(s) financial records.
Moreover, each piece of lost or stolen information would require costly restoration and the transportation company would be legally liable to notify each individual affected in the data breach.
Cyber-attacks can also come in the form of text, phone calls, or even fax. Hackers can impersonate a representative of a bank or the CRA and trick members of the company to reveal sensitive information like passwords or banking information. A fraudulent call or text could lead to theft from organizations through unauthorized electronic fund transfers or identity theft.
After a data breach, there’s a direct negative impact on the bottom line. Whether it’s decreased profits from ransom/fees paid, lost revenue from missed hauls during downtime, or lost clients from damage to the transportation company’s reputation.
Having a comprehensive cyber policy will help mitigate and prevent a cyber-attack on your business.
At the very least having a cyber-policy can ensure that when your business is attacked, you have the support you need to ensure you keep on trucking.
With policies starting as low as $500.00, you can’t afford not to be protected!
For more information on cyber insurance or help obtaining a cyber-policy, please reach out to email@example.com
If you have not already done so, I encourage you to sign up for our monthly Truck Focus Newsletter, as we continue to connect our industry leaders, to the industry, to help create a pivotal change.
The Truck Focus is a division of the Pivotal Transportation Industry Solutions company. We encourage you to learn more about our mission!
Furthermore, if you have a question or topic for a future episode, I encourage you to send us an email inquiry.