How to Recover from a Cyber Attack

Recovering from a cybersecurity incident can be a daunting undertaking, especially if you’ve lost information that’s critical to running your business. But you can limit the damage to your company and your reputation by developing a solid recovery plan in advance.

Conduct a full, encrypted backup of your data on each computer and mobile device at least once a month, shortly after a complete malware scan. Store these backups at a protected, off-site location. Save your encryption password or key in a secure location separate from where your backups are stored. Many software applications will allow you to encrypt your backups.  With your backups in place, if a computer breaks, an employee makes a mistake, or a malicious program infects your system, you’ll be able to restore your data. Without backups, you’ll have to manually recreate your business information from paper records and employee memory.

It’s essential to back up data such as:

  • Word processing documents and electronic spreadsheets
  • Databases, especially customer relationship management (CRM), financial, human resource (HR), and accounts receivable (AR)/payable (AP) files
  • Product design and manufacturing data
  • Other operational technology (OT) data such as machine and process condition monitoring and analysis
  • System logs and other information technology (IT) information

Don’t worry about the software applications; just focus on the data. Store your backups on an external USB hard drive, other removable media, or a separate server. Use caution when selecting a partner if you decide to store your data online and encrypt all data prior to storing it in the cloud.

Hard-drive backups should be large enough to hold all your monthly backups for one year. Create separate folders for each computer so you can copy your data into the appropriate folder on the external drive. After your backups are complete, test them immediately to ensure your efforts were successful.

Like flood or fire insurance, you can purchase cyber insurance for your facility. These services can help you recover from an information security incident more quickly and effectively and may cover the cost of:

  • Cybersecurity expertise to assist in identifying the extent of damage caused
  • Consultation to help investigate the incident and report it to the appropriate authorities
  • Loss of revenue due to downtime
  • Legal fees, fines, and penalties incurred

The Reschini Group can help you navigate the ever changing world of cybersecurity. Contact us today to discuss your situation.

Copyright 2020 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

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You’re Liable: Trends in EPLI Claims for 2020

Available either on its own or as part of a package policy, employment practices liability insurance (EPLI) protects against employee lawsuits alleging inappropriate or unfair acts – any one of which can bring a business to its financial knees.

Any employee – whether former, current or potential – can file suit if he or she asserts that the employer has violated any of an assortment of legal rights.  Examples include:

  • Sexual harassment. Those accused can be senior managers, supervisors, co-workers or even non-employees.
  • Discrimination. Defined as unfair treatment based on religion, age, ethnicity, gender, disability, skin color, sexual orientation or race.
  • Wrongful termination. According to the Equal Employment Opportunity Commission (EEOC), this is the most common claim brought against employers.

Most EPLI policies will reimburse a company for the costs of defending a lawsuit in court, as well as for judgments and settlements. The policy usually covers legal fees, regardless of the suit’s outcome.  With respect to Wage and Hour coverage, most coverage endorsements provide “Defense only” at a sublimit between $100,000 and $500,000.  Damages usually consist of back wages, overtime pay etc., which fall to the employer to pay, not the insurance company.

Some of the most prevalent EPLI-related claims seen in 2020 include:

Retaliation Claims on the Rise – More than half of EEOC claims filed in recent years have involved claims of employer retaliation against an employee.

The #MeToo Movement Leads to Increases in Sexual Harassment Claims – These types of cases represent roughly one-third of all EEOC claims files, including a steady rise in LGBT-based charges.

The Gig Economy Leads to More Wage and Hour Litigation – Fair Labor Standards Act lawsuits have risen dramatically, mostly involving worker classification disputes.

The Gender Pay Gap Remains – The U.S. Bureau of Labor Statistics states that women working at full-time salaried jobs earn 81% of what men earn.

Marijuana Legalization Having an Increased Impact – At least 11 states permit recreational marijuana, with more allowing medical marijuana, as of January 2020.

It’s vital to know that EPLI policies are not all-encompassing. The costs of an employee lawsuit can be emotionally and financially devastating, with the average cost to defend and settle a case averaging $160,000.

Understand your EPLI coverage.  Get advice on steps to avoid some of the trends identified here.  The professionals at The Reschini Group can help.  Contact them today.

Copyright 2020 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.