It is difficult to quantify the value of a company’s reputation unless you are forced into such a scenario as was the case in the Yahoo/Verizon purchase negotiation. Verizon hinted to reducing its offer to buy Yahoo by 1 billion dollars upon the news that Yahoo was the target of a sustained and successful theft of the online credentials and information of 500 million Yahoo users. The attack occurred in 2014 and was not disclosed by Yahoo until two years later.
How much is your company’s reputation worth?
Most of us would probably not compare our business value to that of Yahoo; however, it would be difficult nonetheless to put a dollar figure on company reputation.
How many years of hard work have you put in to building that reputation? How many advertising dollars have you spent over the years? A good reputation is developed over time in which money is spent to provide the best service for your customers. Now imagine if that reputation was questioned due to a cyber-attack on your system. The financial damage related to a cyber-attack may include regulatory fines associated with the breach, the cost of added security and monitoring systems, and goodwill measures or Public Relations costs trying to earn back the trust of customers you spent so long building over the years.
At The Armstrong Company Insurance Consultants we take Cyber Liability very seriously. Contact us to talk with one of our experienced licensed representatives about Cyber Liability Insurance or any insurance related questions. We are here to work for you!