Businesses face a number of different risks when it comes to suffering losses. Whether it’s through their investments or overall revenue, nothing is promised for companies looking to stay in the black. But a growing concern among businesses in any industry, of any size, is the fallout from a cyberattack. Most importantly, retaining and regaining customer trust following an attack.
Cyberattacks cost small businesses about $200,000 in financial damage, causing some to have to close their doors entirely. For major corporations that suffer a hit, a financial loss is one thing, but reputational damage is another. Regaining customer trust after a cyberattack can take some time for companies. Even companies that have a long-standing relationship with customers can see those loyal customers and clients flee after being made vulnerable to cyber breaches.
However, there are steps companies can take to regain customer trust and pick up the pieces to ensure better security and better service in the future.
Recovering from a Cyber Breach: Short-Term Plans
When a breach occurs, customers want to know what’s happening to their information and what the company is doing to clean up the mess. Customers want a business to respond quickly with as much information available as possible as to what’s going on. No matter the size of the business, early communication is key.
One way this can be executed is to put a team member in charge of all communications. Set up an individual or team who is in charge of notifying customers of major events, including a breach. In addition, a chief information security officer can handle isolating the issue and resolving it while keeping clients and customers as informed as possible.
With leadership in place and a system of communication set up, it’s then important to respond quickly and efficiently. Ideally, the day the attack occurs is when the first correspondence should go out. This messaging should include a highly-detailed statement that notes what happened and how the company is managing it.
It’s also important to note that honesty is crucial when it comes to why and how the breach occurred. Businesses should put together a team and discuss how they plan on communicating the details as quickly as possible.
Engaging Cyber Liability Insurance
Having cyber liability insurance can provide peace of mind when going through a cyber breach. This kind of coverage can help businesses through limiting their losses and mitigating risk. While having updated network security in place is important, having cyber liability insurance to limit losses can help to keep an avalanche of financial loss from occurring.
Whether it’s first-party or third-party coverage, cyber liability insurance can take care of messaging, public relations efforts, and defense costs if litigation is pursued, among other benefits and tasks.
Long-Term Plans for Regaining Trust
After the initial dust settles from a cyber breach, it’s time to think about how you’re going to regain customer trust moving forward. One thing that a breach can do is shine a light on vulnerabilities in a company’s data security, for example. Moving forward, a business can limit who accesses customer or client information with different levels of privilege.
Lines of communication should be kept open through social media, newsletters, and website content. It’s important to note that not all customers are the same, so a blanket email may not be as informative as possible. It helps to have updated messaging for all demographics through multiple newsletters and notifications. Consider your audiences and respond in the most appropriate ways, which can be through phone calls, social media, email, or text.
About Financial Guaranty Insurance Brokers
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (877) 485-4413 to speak with one of our professionals.