Cyber Liability Insurance
Your business may be small but the potential cyber threat to it is not.
Protect Your Business With Cyber Insurance
In today’s connected world, small and medium businesses (SMBs) depend on data, software and technology, and a cyberattack or data breach can have a significant impact.
We’ve all read the headlines about attacks at global corporations, but breaches at SMBs are much more common. And while cybersecurity technology and event preparedness are vital parts of a holistic cyber risk management strategy, many businesses are overlooking a critical third component – cyber insurance.
To put this in perspective, consider the auto industry. Today’s vehicles come with an array of modern technology and drivers must be licensed and are warned of distracted or intoxicated driving. Yet we still buy auto insurance to protect against unforeseen events on the road. Many business owners willingly hop on the information superhighway – where other ‘drivers’ are actively trying to harm them – without cyber insurance.
Technology vs. Insurance
Cyberattacks tripled among small businesses from 2015 to 2019, and as a result 67% of survey respondents plan to spend more on cybersecurity technology and mitigation in the next three years. Only 34% plan to spend more on cyber insurance, despite 54% of businesses believing a cyberattack or data breach in inevitable!
Many SMBs think the relatively small costs of ransomware and damaged servers drive cyber losses, so they invest in technology and retain the risk of a breach. However, business interruption and incident response costs are actually more volatile and far greater. The cost of downtime from ransomware is 23 times greater than the actual average ransom, while forensics, public relations, credit monitoring services and notification requirements make up 57.4% of total cyber claim costs since 2009.