Cyber attacks are in the news.  Colonial Pipeline paid $5 million in ransom to recover data after a ransomware assault.  A portion of the ransom was later recovered but the attack shut 5,500 miles of pipeline and disrupted half the east coast fuel supply.  On a  Lamar CFO Jay Johnson recently told the Billboard Insider podcast that he’s thinking seriously about cyber risks.  Billboard Insider talked with Stu Lee of Bassler Insurance  about cyber insurance.

Do Billboard Operators need Cyber Liability Insurance?

• Cyber-criminals are successfully attacking small businesses!!
• Insurance companies are only paying ransoms because the alternative is to shut down the impacted business.
• An ounce of prevention is worth a pound of cure, ask your computer specialist ASAP what happens if a cryptolocker virus runs on a computer today and locks up your billboard management data. What is the path to recovery, and how long does it take to get there?

See these articles:

https://specialreports.oaaa.org/how-to-prevent-hacking-of-digital-billboards/

https://www.solvereone.com/pages/cyber-attacks-on-small-businesses-increasing-in-2021/

https://www.foxnews.com/politics/top-cyber-security-official-warns-of-more-ransomware-attacks

A cyberattack can impact a billboard operator’s business in many ways and Cyber Liability Insurance can address many of those exposures.

1. Loss or Damage to Electronic Data. An attack can damage electronic data stored on your computers. For example, a virus renders your billboard management records useless and shuts down your digital billboards.
2. Extra Expenses. You may incur extra expenses to keep your business operating. For instance, a hacker damages two computers, forcing you to rent two laptops so you can keep your business running until your computers are repaired.
3. Loss of Income. You may suffer a loss of income. For instance, a cyber attack forces a shut down of your digital billboards for three weeks. The three-week closure causes you to lose both income and customers.
4. Network Security and Privacy Lawsuits. If a cyber thief steals data from your computer system and the data belongs to another party (such as a customer), that party may sue your firm. The customer sues you for failure to protect its data, alleging that your negligence caused the company to incur a financial loss.
5. Extortion Losses. A hacker steals sensitive data (yours or someone else’s) and then threatens to post it on the Internet unless you pay him a $50,000 ransom. Alternatively, you accidentally download ransomware that encrypts your data, rendering it unusable. The perpetrator demands a ransom payment in exchange for an electronic key that allows you to “unlock” the encrypted files.
6. Notification Costs. Most states have passed laws requiring you to notify anyone whose data was breached while in your possession. You may also be required to tell the victims what steps you are taking to remedy the situation.
7. Damage to Your Reputation. A cyberattack can seriously damage your company’s reputation. Potential customers may avoid doing business with you, believing you are careless, your internal controls are weak or that an association with you will damage their reputation.

Will the insurance company prevent cyber attacks?

As part of the application process, the insurance company asks the questions to insure that you are doing the right things to protect your network.

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