In June 2024, a large national software provider, CDK Global, was attacked. The ransomware attack affected thousands of auto dealerships around the U.S. Every aspect of the auto dealer’s business was potentially affected, from the car buying process to servicing vehicles to some payroll systems. This brings to light the real-life damage a cyber-attack can do.
Customers were warned to check their credit reports, put a fraud alert or even freeze their credit with the three major credit bureaus. Also to change passwords on any dealership related apps or online payment plans they are using for their vehicles.
Now, what can the dealerships do?
What the dealership can do to deal with this attack is contact their insurance company to verify their cyber liability coverage. Cyber liability coverages vary depending on the business’s forecasted needs in the event of a data breach. The main costs of a breach may include data restoration, loss of income, cyber extortion, notification costs, and crisis management expenses.
A data breach could potentially trigger claims and lawsuits from clients or customers and a business needs to review their policy to check what is covered. Coverage may include network security and privacy liability, electronic media liability and regulatory proceedings.
To better protect your business and your clients, set up a meeting with your insurance agent to review exactly what type and what kind of coverages you currently have. Take action by adding any additional coverage recommended and stay on top of the software your business uses. Ask questions and be prepared as this type of crime happens without the criminal ever stepping foot in your business.
Clockwork Insurance Services offers cyber liability insurance and can assist you in reviewing your current coverages. For more information go to: https://www.clockworkinsurance.com/commercial-insurance.html
Call Clockwork Insurance Services at 504-262-8240
