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. 

 

It’s an innocent mistake. Someone in your company clicks on a phishing link and suddenly customer data and private company information are at risk. It’s a terrifying thought. Outside of enterprise companies, most companies don’t have the internal know-how to mitigate the risks. That’s exactly why cyber insurance is the hottest new protection for everyone from emerging industries and ambitious consumer brands to tech startups. Cyber insurance is one way to help your business recover following a cyberattack. It covers financial losses caused by events such as data breaches, cyber theft, ransomware, and more. But few people understand these new policies. Because of the complicated nature of cyber insurance, there are a lot of myths out there that can be harmful to your business if you fall for them. Plus, as we always say, the best time to manage a crisis is before the crisis. Let’s debunk these 4 cyber insurance myths together. 

First, cyber insurance typically covers the cost of:

  • Recovering data
  • Legal proceedings
  • PR crisis management: notifying stakeholders such as customers and or investors about the incident
  • Restoring the personal identities of those affected
  • Extortion fees

You can see why cyber insurance policies are in high demand. They cover all the bases of your worst nightmare. And yet, there is a lot of fine print in most policies, so it’s important to ask questions and know what isn’t included in your cyber insurance premiums.

Myth #1: All I need to protect my business from cyber threats is a cyber insurance plan

This could not be further from the truth. Your insurance provider will only cover your business if you meet the requirements outlined in your contract. Most reputable insurers will require proof that you have followed the proactive cyber measures outlined in your policy. If you can’t prove your compliance, your claims are unlikely to be paid.

One of the most common insurance requirements is that you have top-tier cybersecurity protection. Another common requirement is evidence of a solid plan in place should you have an incident. You often see these plans referred to as table-top exercises, and they are typically done from a purely technical basis, so Avaans Media has teamed up with Ignite Solutions to cover your technical and brand bases should you experience a cyber incident. A plan like that could help you get cyber insurance, lower your rates, and provide a template for the recovery of both data and brand. Plus, if you ever are breached, you’ll have a team of experts who already know you and your company.

Myth #2: I don’t need insurance since I have cybersecurity solutions

Even though cybersecurity solutions can bolster your defenses, they don’t make you immune to cyber incidents. Yes, cybersecurity solutions reduce the risk of a cyberattack by identifying and protecting vulnerable points in your system. However, no solution can completely protect against all threats because staying on top of emerging risks is challenging. Yes, we absolutely recommend ongoing monitoring, but remember, it only take a second, and human error always results in vulnerabilities in a system, regardless of how secure it is. That’s why it’s a good idea to have a cyber insurance policy in place to fall back on in case of an incident.

Myth #3: Cyber insurance is easy to get

As technology advances, so do the occurrences of cyber incidents. With small and medium-sized businesses being the most susceptible targets of cybercriminals because of a lack of enterprise-level protection, the likelihood of an attack is high. Cyber incidents are so frequent and costly, that insurers have been losing money with their policies. As you can imagine, that’s not sustainable for anyone. Insurers are reluctant to provide coverage since the risks are significant. While policies are still available, they are becoming more expensive and difficult to obtain. This is why proactive steps will help you secure a quality insurance policy. Know what you will do and who will do it. This kind of planning could save you millions of dollars in lost revenue, not to mention brand damage. For example, should you turn off your computers if you’re breached? Who pauses all social media and outgoing emails to clients while the breach is active? Who will talk to the press?

Myth #4: My policy will handle my claims in case there’s an incident

If you can’t prove that you’ve complied with your cyber insurance policy’s prerequisites, your claim will probably be rejected. More and more, insurers are requiring you to complete a series of steps to reinforce your policy. Some of these steps are technical, and some are operational. Covering your bases with an IT service provider and your PR team to develop a plan increases the likelihood of claim approval. An expert PR and IT service provider can help you remain compliant with your cyber insurance policy and provide evidence of such compliance. The best time to handle a crisis is before it happens and never is this more true than with cyber incident planning. Plus, knowing that you know what to do and how to do it will give you peace of mind whenever you see another security breach headline.

Partner for success

It’s crucial not to fall for the above myths about cyber insurance so that your business qualifies for a policy and receives the coverage you pay for. However, it’s also important to remember that cyber insurance is something that demands a lot more time and effort than you might have.

For more information on protecting your data and your brand, contact us. 

3 Measurable Ways PR Increases Revenue For Fast-Growing Brands and Emerging Industries

If you’re considering investing in a PR agency for your emerging industry or fast-growing brand, you might wonder what ways does PR increase revenue outcomes and how can you track it?

Your revenue outcomes will vary depending on your strategy and your strategy will determine your timeline; but here are 3 ways PR will increase revenue.

  1. New Customers, Faster

    One way PR increases revenue is with new customers, faster. As a customer, when you come across a website with recent press coverage and you compare it to a competing brand with none, which do you trust more? This is a key differentiator between advertising and PR: PR is 3X more credible than advertising. Increased credibility and trust have real and measurable revenue implications. If you’re watching for increased revenue as a PR result, watch metrics like track time to close, number of visits before a purchase. You can expect to see consistent benefits in those areas if you’re getting regular, on-brand coverage.

  2. Increased Revenue from Brand Loyalty From Existing Customers

    Why does brand loyalty from PR contribute to increased revenue? Well, your customers like knowing they’re buying from a trusted company. A company others see positively. And your positive PR acts as positive reinforcement to their own values and self-image. This is even more important for younger target audiences (GenZ, Millennials). If this is your strategic PR outcome, then we recommend focusing on brand activations, partnerships, and experiences for existing customers. This can be as simple as a surprise gift in a recent order. Or something as extravagant as a collab with a value-aligned super brand.  As you increase your PR coverage,  Are your unsolicited recommendations on social increasing? Are positive reviews increasing? Does customer churn decrease? These are metrics which support increased brand loyalty.

  3. Increase Revenue by Stimulating Desire

    PR increases revenues with timeless and credible coverage. Because PR has is stickier than advertising, you can appeal to your target audience at just the right time. When customers are searching for products, publications frequently appear at the top of the search, and publications are also trusted guides for customers. So you’re right where you want to be in exactly the right buying moment. Priceless.

For more ideas on maximizing revenue by leveraging your PR, check out my interview with Kage Spatz, which originally appeared in Authority Magazine.

At Avaans,  we offer those services to our clients, but sometimes we find our clients think they need one thing when what they actually need is another. So what’s the difference and when should you use each as a strategy.

In truth, your business probably needs ongoing campaigns for each of those, but breaking it down helps prioritize when choosing an agency, it helps to know which of the three disciplines (branding, PR, and, marketing) you should select the agency for. Many agencies offer services in all three categories, like Avaans, but most lead with one of the primary disciplines.

When Should I Hire a PR Agency vs. a Marketing Agency vs. a Branding Agency?

What’s the difference between marketing, branding and PR?

Branding: Building Loyalty and Affinity

When to do use it: At brand launch, product launch and throughout the brand’s existence to ensure consistency.

Many people think creating a logo is the extent of branding, but nothing could be further from the truth. brand is your company’s personality.

Branding drives the emotional response your audience has to your message and brand. Branding means having a solid understanding of your audience, their emotional triggers. Branding will touch every single thing you do in marketing and PR too. Think about your social media voice – is it sassy or supportive? That’s a branding decision.

B2B firms often think they can skip the branding step, but it’s even more important for B2B brands to invest in clear, concise, industry consistent branding.

A strong brand has a clear voice and gives their customers & clients something they can self-identify with. When your brand fits into their self-story of how they seem themselves you’ll increase affinity and loyalty. The strongest brands have simple identities that rarely change. Think: Coca-Cola (happiness), Apple (innovation) Lady Gaga (acceptance). The strongest brands also always consider their brand when making big decisions (is this consistent with our brand and our customer’s expectations of us?)

All of the below-mentioned tools will support a brand initiative, the biggest key to a branding initiative is to be sure your company has complete clarity on the audience, key messages, and the desired emotional connection. Branding initiatives may include a call to action, but most prominently elicit an emotional reaction or response.

  • Website: with an emphasis design and layout that matches desired emotional response
  • Content: whether 3rd party or branded, designed and selected to enhance brand’s status in the customer’s mind
  • Advertising: with an emphasis on “WHY” the brand is relevant rather than the “how or where”
  • Events: designed with imprint a memorable experience, or attach a brand to a memorable experience, in the customer’s mind, as opposed to a “lead retrieval” strategy

PR: Influence & Social Proof


When to use it: to create awareness, educate consumers, develop trust with stakeholders.
PR is the art of influence and raising awareness. It’s the ultimate in social proof.

In this bucket, we find tactics like:

  • Events: brand-hosted events for customers, community or likely customers
  • Word of Mouth: campaigns that get people talking about your product, brand and key message
  • Media Relations: relationship building with journalists, writers, and bloggers with an emphasis on collaboration
  • Social Media: with an emphasis on key messaging and influencing the market

In PR you may not get editorial control, so don’t count on a strong call to action, although you may get a link or product recommendation, it will rarely come with a heavy sales action. The best PR is earned PR which means it didn’t come with a quid-pro-quo and that’s part of what gives PR enhanced credibility over marketing.

It’s not as if these tactics aren’t supportive of one another (of COURSE you can get leads from PR tactics), but your brand’s maturity, customers, and community will determine your overall mix among other things.

Marketing: Driving Leads

When to use it: after your brand is established and you’ve earned some brand trust.

Acquiring leads is job number 1 for marketing. Depending on your product marketing may also be the science/artform of conversion also.

In this bucket, we find top-of-the-funnel tactics including:

DIGITAL 

  • Website: Landing pages with a strong call to action
  • Content: blogging, lead magnets designed to support the customer’s buying cycle
  • Content: Webinars
  • Social Media: with a link-building and custom content emphasis
  • Email marketing: shopping cart abandonment, new product announcements, customer campaigns and promotions
  • Digital Ads: social ads and banner ads with a strong call to action for potential customers
  • Remarketing: including shopping cart abandonment and past and current customers

IN PERSON

  • Tradeshows/Festivals
  • Seminars

When to use marketing tactics:
Use marketing when your sales people are trained and ready to follow up with leads. Training your sales people to understand the lead source and where the customer is in the decision-making funnel will help increase conversion. Notice one of the key differences between marketing and branding content is the use of a strong call to action.

Have more questions about how and when to use these tactics? Get in touch with us.