By Michael Di Nardo
A pool contractor is likely aware of the importance of protecting their business and assets from potential threats. One of the most critical threats facing businesses today is cyber-attacks, which can cripple a company’s operations and lead to financial losses. For this reason, it is essential to consider purchasing cyber insurance, especially for the pool industry.
Cyber insurance is a form of insurance and it provides coverage for losses and damages resulting from cyber-attacks. This can include coverage for data breaches, network failures, and other cyber-related incidents. A pool contractor likely manages sensitive customer information, such as credit card numbers and personal details, which can make their business a target for cyber criminals. By purchasing cyber insurance, one can protect their business from the financial losses resulting from a data breach or other cyber-attacks.
Cyber-attacks are occurring regularly and regardless of how big or small a business is, it can still experience a cyber-attack resulting in reputational and financial loss. An example is the cyber-attack incident involving a small pool construction company based in the United States. The company, which specialized in designing and building custom swimming pools for residential properties, fell victim to a ransomware attack in 2019. The attackers were able to gain access to the company’s network by sending a phishing email to one of the employees. The email included a link to a malicious website which, when clicked, installed malware on the employee’s computer. The malware then spread throughout the company’s network, encrypting files and making them inaccessible to staff.
The hackers demanded a ransom payment to provide the company with the decryption key to restore access to the data files. The company’s management initially refused to pay the ransom, but as the attack progressed, it became clear the company would not be able to continue operating without access to its critical files, and they decided to pay the ransom.
The attack resulted in significant financial losses and reputational damage, and the company had to pay a large amount to get the decryption key and repair the damage caused by the attack. Further, the company also suffered a loss of clients’ trust and had to spend extra money to regain it.
There are several types of cyber-attacks which can impact an e-commerce business, including:
- Distributed Denial of Service (DDoS) attacks, which involve overwhelming a website with traffic to make it unavailable to customers.
- Phishing attacks, which involve tricking individuals into giving away sensitive information, such as login credentials.
- Payment card skimming, where attackers insert a malicious code into a website’s checkout page to steal credit card information.
- SQL injection attacks, where attackers inject a malicious code into a website’s database to steal information or
disrupt operations. - Supply chain attacks, where attackers target a third-party vendor or provider to gain access to the e-commerce business’s network.
These are just a few examples, and new types of attacks are constantly emerging. It is important for e-commerce businesses to stay informed about the latest threats and take steps to protect themselves, such as using secure software, training employees on security best practices, and regularly monitoring their systems for signs of compromise.
In addition to financial protection, cyber insurance can also provide a business with access to resources and expertise to help them respond to and recover from a cyber-attack. This can include access to crisis management consultants, forensic experts, and public relations professionals. These resources can help businesses minimize the damage caused by a cyber-attack and get their e-commerce business back on track as quickly as possible.
Another important benefit of cyber insurance is the liability protection it provides. In the event of a data breach, the business may be held liable for any damages incurred by their customers. Cyber insurance can help cover these costs, protecting the business from financial ruin. Overall, purchasing cyber insurance is a smart decision for any pool contractor.
Cyber-attacks are becoming increasingly common and can have devastating consequences on businesses. By purchasing cyber insurance, business owners can protect their companies from financial losses and have access to the resources and expertise they need to respond to and recover from a cyber-attack.
Author
Michael Di Nardo has been a name in the insurance industry for more than 30 years, 15 of which he has dedicated to servicing the pool and spa industry. His experience, alongside working with contractors from all over the country, has put him at the forefront of insurance brokers. In founding Oracle RMS, his commitment to his work and clients, coupled with his specialty experience, ensures he provides the absolute best insurance programs catered to those in the industry. Within all lines of insurance, accompanied with a vast range of contract partners in the market, no matter what your needs are, Michael Di Nardo has you covered.
