3 Types of Cyber Insurance You Need to Know About

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If you’re a DTC company or work in a highly visable emerging industry, you’ve no doubt seen headlines about cyber breaches like malware and hacks that demand millions of bitcoin. In fact, 46% of all cyber breaches impact businesses with fewer than 1,000 employees (source). As the world becomes more digitized and cybercrime increases, the need for cyber insurance is something businesses should not overlook. If your company sells online, handles, transmits, or stores sensitive data, you need to know about these 3 types of cyber insurance.

Cyber insurance protects businesses from the monetary and reputational losses arising from a cyber incident that could jeopardize their future. It covers financial losses caused by events such as data breaches, cyber theft, ransomware, rogue employees, and simple mistakes and it covers crisis PR, up to a point.

Since most businesses often lack the resources or budgets of big corporations, cyber insurance can provide critical financial protection in the event of a cyberattack, helping them recover quickly.

Although insurers may have their own specific classifications, cyber insurance can be divided into three broad categories:

Cybertheft insurance

With more and more businesses storing sensitive data online, the risk of cyber theft is more prominent than ever. As a result, adequate insurance against this growing threat is critical. Cybertheft insurance protects businesses from financial losses caused by digital theft. This type of insurance can cover a variety of cybertheft scenarios, including first-party cybertheft, embezzlement scams, payroll redirection, and gift card scams.

Businesses of all sizes can be victims of cybertheft, and no business is too small to need cyber theft insurance.  Cyber incidents are so common, it’s not a matter of if, but when, your company will experience an incident. What will you do if your data or digital assets will be stolen? That’s why cyber theft insurance is so important for your business.

Cyber liability insurance

Cyber liability insurance includes third-party coverage for damages and losses, data breaches, regulatory penalties, credit monitoring, and lawsuits. This is an important type of insurance if you’re a DTC or e-commerce brand.

Cyber liability insurance is a vital tool for small businesses like yours because the financial ramifications of a cybersecurity breach can be more severe than you can handle. This does not mean you should panic right now; it simply means that having cyber liability insurance can help your business recover and move forward, even after a breach, without being stunted.

Planning is critical for reducing your data and brand liability with a security breach.

Cyber extortion insurance/ransomware insurance

Cyber extortion insurance protects businesses against ransomware attacks. Cyber extortion attacks often come with a clicking clock, so it’s important to have a plan. This type of insurance can help cover the cost of ransom payments, recovery expenses, business interruptions, and more. It can also provide access to a team of experts who can help with cyber extortion negotiations and forensics.

Keep in mind that an attack could still succeed even with the right cybersecurity solutions in place to protect your business. That’s why it’s critical to have cyber extortion insurance. It can help you recover from a ransomware attack and reduce the financial impact.

While you’re looking, keep these types of cyber insurance in mind. Cyber insurance is a complicated and ever-changing industry. Many factors can influence whether you qualify for a payout in the event of a cyberattack, and trying to remain compliant with your insurance policy can be difficult. Working with an IT service provider can help you better understand your options and ensure that you have adequate security in place, increasing your chances of receiving complete coverage.

Cyber insurance provides critical peace of mind, but you will still need to be prepared in case of an incident in order to have a successful claim. That’s why we’ve teamed up with Ignite Solutions to provide you with a risk analysis and cyber attack plan that ensures you get through the first 48 hours. Our cyber incident planning service protects your data AND your brand. 

 

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4 Reasons Purpose-Driven Brands Value PR

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Purpose-driven brands value PR, but it requires emotional intelligence and keen cultural sensitivities. Never has this been more true than in today’s divided political climate. Before we get into purpose-driven PR, let’s establish what a purpose-driven brand is.

A purpose-driven brand is one that has authentically and thoroughly instituted a larger social benefit into their company culture and business model. Purpose-driven brands exemplify values, not just talk about them or use them in advertising. Brands like Toms, Patagonia, and many B-Corps are good examples.

So why is purpose-driven PR important for these brands?

Purpose-Driven Values Require Courage

While consumers are increasingly demanding brands and companies take a stand, it’s not all roses for purpose-driven brands. Successful purpose-driven brands value PR firms for their independent perspectives.   Sometimes a purpose-driven brand will need to defend its purpose, or explain why it made a choice inconsistent with its stated purpose. Sometimes a brand should double down on its purpose, and sometimes an exception can and should happen. Sometimes a brand’s legacy reputation needs to catch up with today’s cultural expectations.  Having PR executives at the table during these discussions ensures brand reputation and brand value are part of the decision matrix. PR will ensure that the message is clear, and brand consistent with the press and consumers. The more consistent a brand is in its purpose, the more noteworthy it will be when it’s inconsistent. PR will help you navigate those sharky waters. More and more consumers are expecting candor when brands make mistakes, but this kind of candor is antithetic to many executives, but when PR has a seat at the table from the start, they can avoid many expensive pitfalls.  

 

Speaking of Purpose-Driven Apologies

In PR, we often talk about “getting ahead” of a problem. Purpose-driven brands, for all their glory, are imperfect, so well-considered and authentic owned media and earned media can really make a difference. Purpose-driven brands value PR firms for the ability to get an apology to the right place at the right time. Recently, Patagonia’s CEO wrote that Patagonia is imperfect, even as it remains committed to its sustainability purpose. The piece was incredibly well executed and a brilliant example of leadership, but it was also incredibly well executed. CEOs deserve credit for this kind of leadership, but it’s often PR that puts the resonance into a big, bold, statement like this.

Communications Needs to Reflect Internal Purpose

Purpose-driven brands value PR’s ability to collaborate across departments. No matter the size of your company, if you’re a purpose-driven brand business decisions and internal communications should consistently reflect this purpose. Sometimes authentic purpose will require training for purchase managers. Sometimes purpose-driven brands need to incorporate legal and compliance into their purpose. And purpose-driven brands consistently incorporate their purpose into internal employee communication too.

Purpose in Partnerships

It isn’t only internal comms that should reflect purpose, but sponsorship and ad buys too. A PR professional knows corporate responsibility isn’t defined by a single cause-marketing sponsorship or corporate donation. Today’s consumers are very aware of greenwashing, a good PR agency will help you find opportunities right for your purpose, and keep you out of the fray of disingenuous choices.

This is also true for earned media. Purpose-driven brands want to be sure that their earned media is consistent and that it occurs in the right media outlets at the right time.

Purpose-driven brands can evolve while remaining consistent, such as the Patagonia example above. As more and more U.S. brands look within at their internal culture, it will surprise many to find there was purpose there all along, all it needs is a dusting off and perhaps some polish.

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Why Brand Values Matter to Consumers, Now More Than Ever

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Why Brand Values Matter to Consumers, Now More Than Ever

The proof is in the numbers

It’s more and more competitive to capture consumer attention, that’s why brand values matter to consumers more than ever. It’s getting harder and harder for brands to create positive impressions in the minds of consumers. Negative impressions tend to linger longer in our minds, and unfortunately for brands who try to make a positive impact on the world, there are innumerable examples of companies doing the exact opposite. From wanton environmental degradation and exploiting workers to harvesting users’ personal data without permission and companies bending to the will of authoritarian regimes abroad, we’re awash in stories about bad corporate actors.

 

This is all the more frustrating for companies who are trying to set good examples of what socially and environmentally responsible entrepreneurship looks like. When you’re trying to do the right thing and your message is drowned out by a sea of reckless and irresponsible businesses, it can feel hopeless.

 

Don’t worry, consumers will take note of your brand values efforts

 

However, companies who are truly committed to building a better world can take solace in one powerful fact: Consumers are on their side. As more and more stories about corporations behaving badly surface, consumers are increasingly looking for alternatives. These more environmentally and socially conscious consumers want to know that their purchases are going toward a good cause, and they want to see companies take a stand on social, environmental, and political issues.

 

When you consider the current political and social environment, together with increasing evidence of climate change, this change in consumer preferences becomes even more obvious. People don’t want to contribute to the destruction of our planet, and they want to support companies who are working to disrupt or improve the current status quo. Why wouldn’t they choose to buy from purpose driven-brands?

 

The proof is in the numbers

 

There’s plenty of research to back up these claims. Take this 2018 study from Accenture. They surveyed nearly 30,000 consumers from around the world about their purchasing decisions and the brands they support. Accenture found that 63 percent of the consumers they surveyed preferred to support brands that reflect their values and beliefs.

 

There’s more: Accenture also found:

  • 65 percent of consumers prefer to support companies treat their employees well,
  • 62 percent of those surveyed preferred to buy from companies that try to reduce their use of plastics and want to improve the environment.
  • 62 percent of those surveyed also wanted the brands they support to take a stand on the social, cultural, environmental, and political issues that they care about.

 

Accenture is not alone in their findings. A 2018 study from the research agency Edelman found that 64 percent of consumers will either buy from or boycott a brand based solely on the brand’s stances on social or political issues, which highlights the challenge for brands. This is why a brand-friendly PR firm is so important, we can help you navigate the risks and opportunities that optimize purpose-driven communication. The survey included over 8,000 people in eight different markets worldwide, and the researchers also found that 53 percent of those surveyed believed that brands could do more to inspire social change than governments can. Regardless of whether brands really have that power, consumers increasingly believe that they do and are basing their-decision deciding accordingly.

 

These trends in buying habits are particularly pronounced among one key demographic: Teenagers. A 2018 report from MediaCom found several important statistics related to teenagers’ buying habits and the brands they support. The survey found that 54 percent of teens age 16-19 had deliberately bought or stopped buying from brands because of the brands’ ethics. The research also found that 63 percent of teens are more likely to buy from brands that support causes or charities they believe in. However, skepticism among teens concerning brands is still rampant, as 37 percent of those surveyed were doubtful of brands’ claims regarding the causes they support and 69 percent believe brands overstate their level of support for their chosen causes.

 

Taken together, these data points represent a massive swing in consumer decision-making habits. In the past, many companies stayed away from social or political causes out of fear or because they didn’t want to risk a backlash from consumers. But the data show that if brands take a stand on social issues and can demonstrate their authenticity, consumers will respond positively and adjust their buying habits.

 

We can already see how major organizations are taking this data and incorporating it into their marketing efforts. The shoe company Toms has donated one pair of shoes for every pair sold since its founding 13 years ago, making it an exemplar for other businesses to follow. Additionally, Toms has become a certified B-Corp, meaning they meet strict standards for accountability, transparency, and social and environmental impact. Finally, Toms has also pledged to spend at least one-third of its annual net profits on charitable causes, which is much more than most other corporations can say.

 

So, where does this leave your brand if you’re dedicated to making the world a better place? It’s simple really: You need to get that message out to consumers, and you need to do so in a way that’s genuine. That may be a challenge for some companies and some PR agencies, but not for Avaans PR. Helping purpose-driven brands get their message across is what we do, and we can create a campaign for you that plays to your unique strengths.

 

How Avaans PR Can Help with Brand Values

 

We’ve already helped a number of brands do exactly this. In one case, we worked with a nonprofit organization focused on helping pre-Kindergarten students from economically disadvantaged families become better students. We had to create compelling content aimed at two very different audiences: The families who needed help and state legislators considering funding more early education problems.

 

We kept the design of our content simple, using visuals wherever we could, and maintaining a supportive tone throughout. This encouraged families to share content with one another and avoided coming across as paternalistic or lecturing, which also helped to avoid alienating decision-makers at the state level. And the campaign worked: The state legislature funded the early education problems, and we generated over 401,000 impressions among our targeted audience during the length of our six-month campaign.

 

If your brand is seeking to expand its reach and you’re not sure where to begin, we want to help. You can set up a call with our team by visiting our contact page, or you can find us locally in New York, Los Angeles, San Diego, Denver, Honolulu, and Phoenix. We look forward to hearing from you.

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How PR for B-Corps Makes a Difference

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B-corps are uniquely positioned to be storytellers. But how does PR for B-Corps differ?

Is purpose all it takes to thrive?

 

You started your company to make a difference in the world. You know it, your team knows it, and your loyalty and customers know and believe in your product and your mission. So, how do you expand your reach? How can others find you in an increasingly crowded B-corp marketplace? Does PR play a role in successful B-corps?

This is an issue no matter what industry you’re in; the audience for your product or service may be larger than ever, and there may be more ways to reach them, but there are also more competitors out there looking to connect with that same audience. This is where a focused and strategic public relations campaign can help.

Expanding your awareness beyond traditional marketing campaigns is especially vital for companies who aren’t focused solely on profits and want to make a positive impact on the world. Becoming a certified B-Corporation isn’t easy, as it requires meeting exacting standards regarding accountability, transparency, and social and environmental impact. After going through the rigorous certification process to obtain B-Corporation status, it’s deeply discouraging if you can’t get your message out to those who want to hear it.

Should B-Corps Leverage PR Over Other Channels?

So, what are your options if you’re a B-Corporation looking to expand your reach? You could try the traditional tools: TV advertising, ads on social media, content marketing, direct mail, and so on. But these tools require significant resources that not all companies have, and worse still, there are signs that they are increasingly ineffective. One study showed that 86 percent of people skip or ignore TV advertisements, 44 percent of direct mail is never opened, and 91 percent of email users end up unsubscribing from company email lists they had previously opted into. These tools may work if you have the resources for a large, prolonged campaign, but they’re not feasible for many organizations.

A better approach for B-Corporations is to let other brands tell their story for them through a strategic public relations campaign. This may seem a bit counterintuitive; after all, you’re giving up control of your message when you use PR instead of more direct marketing or advertising tools. But for many people and businesses, getting a story from a brand they trust is more impactful than when companies try to engage them directly.

Is there any research that proves this theory? In fact, there’s quite a bit of it. A study from the Content Marketing Institute showed that 80 percent of business decision makers and 70 percent of customers prefer to get information on a company from articles rather than ads.

Is PR More Effective for B-Corps?

Why is it that so many people seem to prefer reading about a company in an article rather than seeing an ad from the company directly? For one thing, advertisements can be very pushy, and they have a way of inserting themselves when you’re trying to do something else. If a businessperson or customer comes across an engaging article about a company, however, they can choose to read it when and how they want, on their own terms.

The other reason people prefer to read about a company in articles is trust. Savvy decision makers and cynical consumers are often skeptical of the messages they receive through advertisements, social media posts, and other types of marketing with a more direct approach. They know that they’re being marketed to, and they’re suspicious that the message and information they’re receiving may be untrue or misleading.

On the other hand, if they get that same information from an outlet that they already know and trust, they’re more likely to be receptive to the message and believe it. This is particularly true for the Millennial generation; research shows that Millennials are 247 percent more likely to be influenced by blogs and social media sites than are older generations. Similarly, 96 percent of B2B buyers are looking to read more content from industry thought leaders, and 93 percent of B2B buyers begin their buying process with an online search. If you can get articles in well-known, respected publications, you’ll rank highly in online search results — and there’s an eager group of businesses who are waiting to hear from you.

This isn’t to say that PR can’t function in conjunction with other tools to help your business grow. In fact, that’s exactly how PR should work. By getting information about your company into relevant and respected publications, consumers and other businesses can learn more about what you do. From there, you can direct them from the articles to your business’ website, social media pages, and other venues where you can engage them more directly.

 

How To Use B-Corp PR with Other Channels

That’s exactly what we do at Avaans Media. We are experts at harnessing traditional PR tools as well as newer marketing strategies, to help purpose-driven brands find success in the marketplace. No matter what you do or what your goals are, we will help you grow and thrive by crafting a strategy uniquely tailored to your strengths.

Here’s one example of how we can use PR to help your business. Our client was looking to break into the consumer packaged goods industry with a range of hemp-based products. Despite the differences between hemp and marijuana, many consumers were unfamiliar with these kinds of products or had negative views of them. We knew we needed purpose-driven campaigns.

To help our client reach their goals, we took a multi-pronged approach that increased their brand awareness and shaped their public image in a positive direction. We celebrated purpose throughout our campaigns, from health and wellness to global sustainability.  We leveraged our media contacts to generate more than 200 articles about the company over three years, averaging five articles per month. These articles generated more than 10 billion earned media impressions over those three years, with an estimated value of over $5 million dollars. By the time the client was ready for their initial public offering, the company’s share price had risen by more than 300 percent, and much of that increase can be attributed to our campaign.

 

Contact Us To Get Started

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