Cyber Risk Insurance
THINK YOU DON’T NEED CYBER RISK COVERAGE? THINK AGAIN…
It’s not a question of if your organization will suffer a breach, but when. Will your business be prepared?
One Cyber Event Can Shut Down A Business – One Policy Can Help Protect It.
Organizations of all sizes, from small businesses to Fortune 500 companies and every organization in between—including financial institutions and nonprofit organizations are vulnerable to cyber threats.
Just one stolen laptop, one resourceful hacker, one virus or even one lost paper record can create enormous financial and reputational consequences for your business.
What is Cyber Risk?
Cyber Risk derives from use of the Internet as a tool to conduct e-commerce and general business operations. Common exposures include (but are not limited to):
- Data/security breach
- Copyright or trademark infringement
- Data destruction and/or corruption as a result of a virus
- Cyber extortion
- Hackers, worms and other cyber meddlers
- Firewall and network security attacks
1. Data breaches and cyber attacks are becoming more common and have increased 62 percent in the last year alone.
2. 31 percent of all breaches have occurred in organizations of 2,500 or fewer employees and 30 percent in organizations of fewer than 250 employees.
3. All industries are vulnerable to a data breach or cyber attack, including education, ﬁnancial services, nonproﬁts, professional services, manufacturing, hospitality and retail sectors.
4. The average cost of a data breach has risen to over $6 million and includes costs related to business disruption, revenue loss, equipment damages, legal fees, public relations expenses and forensic analysis, as well as notiﬁcation costs that are legally mandated in 47 states.
5. When your business experiences a data breach, the costs associated with that breach average $217 per compromised record. Unless you secure a dedicated cyber policy, your business is not likely to have adequate insurance coverage.
Why Buy Cyber Risk Insurance?
If your business uses the Internet,it is exposed to risk that may not be covered under your current commercial insurance policy. In fact, typical General Liability policies often do not cover activities associated with Website Publishing or Network Security.
If lack of coverage from existing policies is not enough encouragement for you to purchase Cyber Risk Insurance, then consider the following statistics:
- Lost business now accounts for 69% of data breach costs.
- According a national survey, many businesses do not have the tools or procedures in place to detect identity fraud, including an incident response plan, vendor management procedures or data encryption for personally identifiable information.
- Most victims do not even know that their data was compromised. 87% of the breaches were discovered by a third party.
- 92% of breaches were from external sources. Over 80% from overseas, organized crime accounts for 55% of external breaches.
There are Regulatory Requirements that apply to most organizations today. Data breach Notification Laws are in effect in most states today that require notification of customers in the event of a data breach. The Red Flags Rule is being enforced by the Federal Trade Commission (FTC) that requires organizations to have Identity Theft Protection Programs in place (or be subject to penalties or fines). The compliance costs to notify customers as well as the risk of incurring fines/penalties can drive up business costs.
Contact Us to find out how we can help you choose the right solution for your needs