Companies are struggling to find the best way to manage risks associated with data breaches and cyber attacks. Cyber risk mitigation usually includes a robust, risk-based security program, regular assessments, and testing, but there’s no such thing as perfection. Organizations must constantly strive to thwart attackers’ efforts to penetrate their networks, while also mitigating the damage they can do if they succeed. Cyber liability insurance, or ‘cyber insurance,’ is one more step many organizations take to reduce harm in case of an attack. Cyber insurance can help protect you from the heavy costs of data breaches.
Many times, smaller organizations assume that attackers prefer to go after large companies. However, attackers work to exploit companies of all sizes. According to the 2021 Verizon Data Breach Investigations Report (DBIR), organizations with fewer than 1,000 employees accounted for 46% of all breaches.
When evaluating the need for cyber insurance, there are many things to consider. Three key questions:
The average cost of a data breach in the United States is $9.44M, and the global average is $4.35M. However, it is important to understand the intangibles surrounding a data breach. How much could it damage your reputation and decrease sales and customer trust? According to research by IBM, 52% of SMBs have experienced a cyberattack in the last year, and 10% have experienced more than 10 cyberattacks.
Cyber liability insurance is designed to help an organization pay for business and legal fees as well as customer notifications, forensics experts, and recovering compromised data.
The ability to obtain cyber insurance and its cost are based on the level and completeness of certain security safeguards including:
Due to the increasing number of successful attacks and data breaches, insurance companies continue to raise premiums. Additionally, the scope of coverage they provide is based on how well a prospective client completes detailed security assessments. Furthermore, many insurance companies are limiting how much they will pay on a claim if the breach falls within a policy exclusion.
Often, businesses lack the expertise in house to properly identify and manage their risks. Many organizations can benefit from assistance creating comprehensive security programs that address requirements, including those from cyber insurers. That is where services organizations like Netrix can help. We make it our mission to ensure your business is always secure and protected from even the worst cyber criminals. Our expertise can help you create a new cyber security program or mature an existing one while helping you determine if you should purchase cyber insurance or retain your current insurance.