CYBERATTACKS
THE THREAT OF CYBERATTACKS
CYBER INSURANCE AND HOW IT HELPS
The cybercriminal is always looking for ways to break into your business ’ s network , and in most cases , it ’ s just a matter of time before you get hit . There are many different avenues for a cyber breach . According to a recent survey , 91 % of all cyberattacks start with a phishing email that is opened by an unsuspecting victim . Imagine being the one who accidentally gave access to the hacker .
Common entry points include weak passwords , disabled security tools , unprotected personal computers , and public Wi-Fi , to name a few . Once they ’ re in , the damage to you , your company , and your reputation could be devastating .
If you think your small business will never be a target of such an attack , think again . A recent story reported the following :
• The average cost of a cyberattack on a small to medium-sized business ranges between $ 826 and $ 653,587 .
• Forty-seven percent of businesses with fewer than 50 employees have no cybersecurity budget .
• Employees of small businesses experience 350 % more social engineering attacks than those at larger enterprises .
• Eighty-seven percent of small businesses have customer data that could be compromised in an attack .
In IBM ’ s Cost of a Data Breach Report 2022 , the average attack costs $ 4.54 million without the demanded price factored in . IBM also noted that 83 % of organizations have likely had more than one breach .
Unless you ’ re willing to take that risk , implementing cyber insurance into your business ’ s budget is crucial . Cyber insurance offers many remedies . In addition to providing organizations with information and expertise following a breach , it helps to recover revenue and pay for the legal costs related to the incident .
A cyber liability insurance policy can help protect your business financially in the event of an attack . Policies can differ widely , and there are no set minimum criteria , so you ’ ll have to work closely with your agent to find the best policy for your organization . Here are some basic coverage areas to consider :
• Disaster recovery costs , which may include expenses for forensic accountants , attorneys , and advisors .
• Crisis management to help contain any bad publicity stemming from the breach .
• Social engineering fraud , which can result when hackers trick trusted employees or vendors into disclosing sensitive information .
• Extortion , which includes threats by foreign entities that can only be satisfied through large cash payments .
• Third-party damage covering violations committed by a subcontractor you hire , such as a mail house or fulfillment center .
• Business disruption if damage to your computer systems leaves your company unable to function for some period of time .
• Credit monitoring services , allowing customers suffering data exposure to periodically check their credit status .
Every company has to worry about being hacked . Similarly , there is no company in the world with completely foolproof cybersecurity . As a result , every business should prepare for a security compromise . When other safeguards have failed , cyber insurance can provide a stable , secure , and worry-free environment . +
BY : RUSSELL UHRIG ASSOCIATE ADVISOR JGS INSURANCE , A BALDWIN RISK PARTNER
Russell Uhrig helps business owners navigate the insurance industry , and the complexities of an insurance policy . Working closely with these business owners , he can provide the coverages that best fit the needs of his clients in their industry . Through the process of assisting businesses , Russell can empower business owners to have a deeper understanding of their policies through analysis , provide customer service , and create a service-oriented program .
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