7 min read
In today's fast-moving modern world, Cyber-attacks have become an increasingly potent threat to businesses of all sizes.
Data breaches continue to dominate headlines around the world. In 2019, 88% of organizations worldwide experienced a type of spear-phishing. Also, according to Inc.com, 60% of small businesses fall within six months of experiencing a cyber attack.
Since cybercriminals are getting savvier and the average cost of data breaches is increasing, it's vital to know what measures to take to protect your business from experiencing such breaches. If you are a business owner, you need to consider getting cyber liability insurance.
Cyber liability insurance is a must-have addition for businesses because it protects them from the high costs of a data breach. It also covers expenses such as credit monitoring, customer notification, fines, and legal fees.
In this article we've put together, we will cover crucial information you need to know to protect your company from a data breach, along with solid reasons why getting cyber liability insurance is a wise business decision.
When cybercriminals successfully infiltrate the organization, they can get information like names, phone numbers, credit card data, addresses, driver's license numbers, health records, and even SSNs.
Attacks can range from malicious assaults on your physical servers to phishing scams that solicit sensitive data from individual users. Cybercriminals may also use ransomware to block access to your software until you pay a sum of money.
Let's take a look at three exceptional data breaches cases.
Are you looking for a team of IT professionals to help you deal with a recent security breach? Contact Systems X today to learn more about everything they can do to help you!
Common ways cybercriminals penetrate the system and gain access to sensitive data is through:
As you can notice, the list is vast. For that reason, it's essential to learn how to prevent ransomware from entering your system. Additional problems of losing your sensitive information to hackers include:
What is cyber liability insurance?
Cyber liability coverage includes the cost for a company to recover from a data breach, cyberattack, or virus. It also covers legal claims emerging from the breach. It can pay for attorney's fees, fines, credit monitoring, and other costly expenses.
Getting reliable insurance is crucial as it ensures that you are financially secure in facing any problem you might encounter. Since it's impossible to avoid the spam risk of cybercriminals, buying cyber liability insurance is a wise business decision.
Any company that stores sensitive data in the cloud or an electronic device should have cyber liability insurance. This includes everything from large organizations to sole proprietors. There is not a company too small or too big to not need cyber liability protection.
You will need Cyber Liability Insurance if your business does any of the following actions:
If you have questions or doubts about getting cyber security liability, you should contact a managed service provider like Systems X to help you make wise business decisions. However, the type of industries that must have cyber liability insurance are:
According to the Economist, Americans spent 5% of their working time at home before the pandemic, and now it's approximately 60%. Since telecommuting is on the rise, it is essential that you have cyber liability insurance because people use their personal computers to enter their organization's portal, and hackers exploit this to implant malware.
It's noteworthy to mention that although people are working longer hours, they are reporting higher happiness and productivity levels. As lockdowns lift, this working methodology from home is likely to stay because of the benefits of telecommuting.
Cyber liability insurance can cover costs linked with data breaches and cyber attacks on your business. Those costs can include lost income due to a cyber event, expenses related to notifying customers affected by a breach, fees for recovering compromised data, costs for repairing damaged computer systems, and more.
Research done by the IBM and the Ponemon Institute put the medium cost of a data breach at $3.86 million. Also, it takes about 280 days to identify and contain a breach.
A cyber insurance policy can pay for:
Cyber liability insurance is still evolving. Insurance companies are relatively new to this space, so there isn't much clarity around what cyber liability insurance includes and doesn't. For this matter, it is essential to read through your entire policy before committing, preferably with the help of a broker or insurance expert.
With the right cyber liability insurance, you can dodge the losses and harm to your brand that can otherwise occur from a data breach.
3 min read
Organizations are striving to build trust with their customers by demonstrating their commitment to cybersecurity. One effective way to establish...