Very few businesses today operate without technology, from storing client data to housing your sensitive information most businesses are very vulnerable to a cyber attack.
And if you still do not have Cyber Liability Insurance, you could be facing a whole heap of issues.
Protecting Yourself and Your Clients
Cyber Liability Insurance provides a combination of coverage options to help protect your business. It’s not a question of if your organization will suffer a breach, but when. Most policyholders can access tools and resources to manage and mitigate cyber risk – pre-breach and post-breach.
Cyber Liability Insurance can cover costs associated with the liability of a claim or suit related to a breach. The right coverage your business or organization needs depends on your level of risk.
We’ll explore how the following coverages might fit with your particular business needs:
- Coverage for legal fees and investigative or forensic costs associated with a security or privacy breach.
- Fines you might incur as the result of a cyber-related event.
- Expenses associated with notifying customers after a breach occurred—everything from legal expenses and credit monitoring to advertising and postage.
- Comprehensive coverage for interruption expenses, including income loss.
- Coverage for damages third parties may experience as a result of a network security breach.
- Protection against losses resulting from cyber-extortion and cyber-terrorism.
Proof is in the Pudding
According to Beazley’s May 2019 Breach Insights Report, the number of ransomware attacks increased by 105% in the first quarter of 2019 when compared with the first quarter of 2018.
It also reported a 93% increase in the amount of ransom demanded over the same period, with the hackers requesting $224,871 on average to release data. Several high-profile attacks against municipalities, schools, manufacturers, and healthcare facilities served to increase concerns. While some victims caved into hackers’ demands and paid six- and seven-figure ransom payments, others refused and chose to recreate data and systems that housed it. The latter choice almost always led to even greater costs than the original extortion payment requested by hackers.
In fact, Coveware’s 2019 Ransomware Marketplace Report revealed that business interruption costs were typically 5 to 10 times greater than the average ransom demand.
Ransomware was not the only concern. In April 2019, the FBI reported that cyber losses were driven by social engineering attacks, specifically business email compromise. These attacks doubled in 2018, compared with 2017 figures, and amounted to $1.3 billion in costs. AIG validated the trend in its July 2019 Claims Intelligence Series, where it reported that business email compromise claims accounted for 23% of all cyber insurance claims the company received in Europe, the Middle East, and Africa in 2018.
AIG reported a staggering increase in overall cyber claims frequency as the number of claims nearly doubled between 2017 and 2018. In fact, it received more cyber insurance claims in 2018 than in 2016 and 2017 combined.
Don’t Become a Statistic
The good news is that you can be proactive in protecting yourself from a cyber attack. From following best practices like changing your passwords frequently with a complex phrase to securing the best Cyber Liability coverage for your business, we are here to guide you every step of the way.
Our cyber liability insurance experts can help you determine the best coverage and offer advice on other ways to protect your business. Don’t hesitate, contact us today!