Cybersecurity was a rising issue before the COVID-19 crisis struck. Since then, it’s quickly become even more important. With more people staying, more people are going online and using email, networking software, and social media to stay in touch with family and friends. Cyber scammers are taking advantage of the increase in online activity.
Cybercriminals often send official-looking emails asking the target to click on a malicious link or directly interact with malicious actors. Unfortunately, they’re also becoming more sophisticated in their efforts. By one estimate, 30% of all phishing emails are opened. Once inside the system, criminals often find easy-to-exploit networks, unpatched infrastructure, and technical controls that are easy to bypass with their level of skill.
All this cybercrime adds up quickly. It’s estimated that it will cost businesses $6 trillion by next year. How can you protect yourself and your business?
Cyber Insurance is quickly becoming one such solution. In 2019, Cyber Insurance Purchasing Trends Report found that 42 percent of a broker’s U.S.-based clients purchased cyber insurance last year, up from 38 percent in 2018 and more than double the number of companies that purchased coverage in 2014.
There are four main ways cyber insurance protects your business.
Lost Data: If a breach does occur, a cyber policy can cover breach notifications and remediation expenses, subject to the applicable retention. It also can cover defense expenses such as responding to and cooperating with regulatory investigators.
Lost Devices: A cyber policy can include Network and Information Security Liability coverage, which provides protection for failure to prevent unauthorized access to, or use of, data containing private or confidential information of others. The costs for a single lost laptop can include more than just the cost of the device, such as legal costs, investigation, and miscellaneous expenses.
Notification Requirements: Notifying customers of a breach and other post-breach responses, which is mandated by law, can add up, averaging $1.72 million according to one survey of U.S. businesses. A cyber policy can refer the customer to a law firm to serve as counsel and breach coach and help reimburse those costs, subject to the applicable retention.
Forensics: Computer forensics teams can determine the extent of a breach and whether private customer information may have been compromised. A cyber policy would reimburse the insured, subject to applicable retention, for computer forensic experts. The policy also could provide coverage for potential business loss and extra expenses that may occur during the period of business restoration.
How can you get started securing your cyber assets? Speak with one of our expert advisors today. Visit www.ansay.com or call 1-888-262-6729 to get connected.