There is no doubt that the last couple of years have been filled with never-ending challenges and uncertainty. Unfortunately the pandemic, along with the transition to remote work, has caused cyber attack numbers to rise, making cyber insurance crucial for all businesses to obtain. Below is a graph detailing how cyber attacks have affected major industries over the last several years. ↓
Below is a breakdown of the average cost of a cyber claim per industry. ↓ As you can see cyber breaches are extremely costly and dealing with the fall out can be immensely time-consuming.
While using preventative technology and educating your team can help your business circumvent a cyber attack, there’s is not a way to 100% prevent a cyber breach. Hackers continue to find to new ways to manipulate employees and gain access to private information.
The graph below details the average costs businesses face AFTER experiencing a cyber attack.
As you can see the costs associated with cleaning up a cyber attack are astronomical. After a cyber breach occurs, there are many steps that need to be taken in order to determine how much damage the cyber breach has caused.
1. Those affected by the cyber breach will need to be notified in a timely manner (see Colorado reporting laws HERE). Your clients and as well as your team will need be notified of the cyber breach as well as what personal information was accessed and how your business plans to handle the attack.
2. Proper precautions will need to be taken in order to monitor the effects of the breach. Example: Free credit/ID monitoring for those whose private information was accessed during the cyber breach.
3. Technology and education to prevent another cyber attack in the future will likely need to be implemented as well. Businesses often hire a digital forensics team after or during a cyber attack to piece together any evidence and understand the scope of a breach. This step is extremely important in order to understand how the breach occurred and what technology and education needs to be implemented within your business to ensure a breach does not happen again.
In today’s ever-changing world, it is more important than ever to have the proper protection in place for your business. As technology continues to advance, hackers will only continue to find new ways to gain access to your private information.
It is important to note that often times cyber insurance coverage that is included or added to your business insurance policy is not enough to cover the costs associated with a cyber breach. It is crucial that you speak to your insurance advisor about how much coverage you actually have in the event your business experiences an attack.
As a local insurance broker, our team has access to some of the best cyber insurance coverage available. Don’t fall victim to an uncovered cyber attack. Give us a call today to discuss your options.
Be sure to keep an eye out for more articles on cyber breaches and how to make sure you are protected in the event your business is attacked.
Source: Netdiligence Cyber Claims Study 2019 Report