Tag Archive for: crisis communications
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.
Creating appropriate crisis communications strategies is necessary for any business, but this is especially true for a cannabis crisis. Whether it’s a recall, or a significant event hits the industry, cannabis companies must change how they handle potential problems that could challenge their success. This is especially true for CPG companies like cannabis brands who also have the additional risk of a cannabis recall.
The unexpected can happen at any moment. For example, the COVID-19 outbreak limited business operations and disrupted consumer spending habits. Airlines canceled flights, and hotels stopped accepting reservations. Everyone went into lockdown, and it affected companies in every job industry.
You need to have a solid plan in place before you face a cannabis crisis that can significantly affect the cannabis industry. Adequate preparation could prevent a decline in profitability while you’re dealing with a new normal. You must develop necessary communications to address scenarios you could encounter. Circumstances constantly change, and it’s crucial to be ready for anything.
You might need to establish multiple communications channels. You should create a hub and assign specific people to lead each group. Allow your chosen leaders to review and approve statements and consistently provide updates to executives.
Each staff member within the groups should have scripts they use to answer external and internal inquiries. They should also have a list of updated contacts, so they have access to people they need to communicate with.
In a Crisis: Prioritize Safety
Consumers want to know they’re safe whenever a crisis hits. During the coronavirus pandemic, companies put safety measures in place to protect their employees and customers from unnecessary exposure. When you run a cannabis business, you should ensure everyone’s safety at all times. Anyone walking into your store or buying your product needs to know they’re in an environment that won’t make them sick.
Your communications should address safety concerns. Anyone overseeing an internal employee should work with HR and legal teams to develop policies regarding sick leave, working shifts, office health, and telecommuting options during a crisis. You should also create a plan to approach conversations between managers and employees, so information flows seamlessly throughout the company.
Instruct groups handling communication with consumers to advise the protocols you follow regarding cleaning and health. Your customers should be aware of the maximum capacity in your stores and how your workers handle cannabis deliveries without putting others at risk.
Your website is essential for communicating with the public during a crisis. Update your page frequently to inform others of your company’s policies. Advise them of the steps you’re taking to address current issues and prevent further problems from arising.
Your customers should know you take their health and safety seriously during this challenging time. You’re not willing to place them in harm’s way when there’s a crisis. All the safety precautions you take are meant to protect you, your employees, and the public.
The team you designate to handle regulatory affairs will play a valuable role in your company. They can liaise with federal and state health officials to keep your business up to date on evolving safety protocols. The team should communicate regularly with officials and share accurate and detailed information with management and staff. They should also notify officials of what your company is doing to comply with the required regulations.
Impact of Cannabis as an Essential Business
Many states see the cannabis industry as essential. Instead of shutting down with other businesses when there’s a crisis, these companies can remain open. However, acquiring and maintaining the status of an essential business isn’t a guarantee for success. You must have a plan to respond to the local government’s regulatory agendas and address their concerns if you want to continue operating.
You can plan how you’ll communicate the essential nature of your product by discussing the medical needs of cannabis. Lobby for an essential status designation from the leaders in your area. Taking action now could prevent a crisis from negatively affecting your company in the future.
Employees in your PR and marketing groups can explain the medical and social benefits of cannabis to a large audience. They can show the public the importance of the cannabis industry and how it can help people navigate a crippling crisis, such as the Covid-19 pandemic.
Your media team can also inform reporters of your company’s philanthropic efforts. Some businesses donated hand sanitizer to healthcare workers to keep them safe and prevent the further spread of the virus. Journalists and news outlets can get the word out about your industry’s dedication to the well-being of residents within the community.
Don’t Forget About Your Investors
You must maintain frequent and ongoing crisis communications with anyone with financial interests in your company, such as investors and suppliers. Instruct your team to communicate with your suppliers regarding retail challenges and inventory shortages they might face. Try to come up with solutions to the problem before they happen, so you protect your retailer’s and supplier’s bottom lines.
Any investors you formed a relationship with should be aware of the steps you’re taking to resume normal business operations. Your team must identify essential business functions, such as supply chain services and critical jobs, that are necessary to continued operations with limited disruptions.
Your spokespeople must warn investors of potential disruptions to operating procedures. Your investors should also know about your plans for an emergency and how you’re going to recover once the crisis is over.
Streamlining your crisis communications strategy means you can successfully navigate any crisis you face. Review statements you make before releasing them to determine whether they reflect your company culture and the impact you have on your customers. The cannabis industry can overcome complex obstacles and thrive with strategic and effective communication plans.
Contact Us
Avaans Media is a top cannabis PR agency you can depend on to effectively manage your company’s brand and implement the appropriate strategies to gain new customers and grow your business.
Since 2008, our PR team has provided comprehensive services to clients in various industries. The cannabis business is unique but expanding rapidly. You need to keep up with your competitors, so they don’t leave you behind. Our team can spearhead your campaigns to improve your credibility and reputation within the market.
Contact us right now if you’re interested in discussing your needs with a trusted and knowledgeable PR firm with years of experience.
