Samsung has been in the news often as of late, and not for the right reasons. Once a highly-esteemed company, Samsung's reputation has been hit hard by news of cyberattacks, exploding phones and government scandals.
It seems that once Samsung's bad news started being broadcast, more followed, sullying the company's once pristine reputation. When a business suffers a cyberattack, it takes significant damage control measures to assure the public that this is a one-time slip-up. Maintaining a cybersecurity liability insurance policy is certainly one way to show your customers that you are doing everything you can to make sure they are covered should another cyber disaster occur.
But it's not enough.
To truly bolster company credibility, you need cyber and small business insurance. When it looks like you're looking out for your customers' interests, they will remain loyal. However, if your company has continued to make mistakes time and time again, much like Samsung, you will face public scrutiny and a decline in business sales. Cyber liability insurance and small business insurance costs are nothing compared to what you can lose monetarily should your business suffer massive PR casualties. Learn from Samsung: tragedy comes in threes. If you're not prepared for the first mishap, you surely won't be prepared for those that follow.
Samsung 2015 Hack
In 2015, it was learned that every Samsung Galaxy mobile device, including versions S3 through S6, had a cybersecurity flaw that could not be repaired, as reported by CNN. The security flaw, found in the smart device's keyboard software, gave cybercriminals direct access to Galaxy phone holders; the device became a tool for spying. It was estimated that this security flaw affected 600 million Samsung Galaxy users.
Cyber insurance would come into effect to protect Samsung and its users if cyber incursion had occurred. No doubt Samsung called on their cyber insurance agent to detail the potential cyberattack.
Samsung immediately got to work on writing code that would stop cybercriminals from being able to gain access to user smartphones, but not before their reputation sported a blemish.
Samsung Exploding Phones
In 2016, the South Korean company was hit with another device issue: Samsung Galaxy Note 7 devices were exploding! The smart device's batteries were overheating and catching fire, but it was several months before the company told consumers the reason why their devices were exploding and needed to be recalled. Wired Magazine writes that there were two separate problems in the case of the batteries that were from two different suppliers.
Problem 1: The batteries made by Samsung SDI didn't have enough room \"between the heat-sealed protective pouch around the battery and its internals.\"
Problem 2: The batteries made by Amperex Technology Limited had \"cells with missing insulation tape, and some had sharp protrusions inside the cell that led to damage to the separator between the anode and cathode,"\" causing an explosion.
Cyber insurance does not work in this instance. Samsung will have had to use their business insurance, a policy that covers claims of property damage and liability.
Unfortunately, the exploding cell phones were not Samsung's last PR nightmare. It was reported that Samsung's Vice-Chairman, Lee Jae-yong, was indicted for bribery and embezzlement with the now ousted South Korean President, Park Geun-hye.
Found to be involved in shady dealings with the South Korean government, Samsung has since been embroiled in ugly news coverage.
The point of all of this is, anything can happen; things will go wrong. To protect you and your customers' interests, invest in both cyber and small business insurance-it could save your business.