Cyber threats continue to rapidly evolve and become more complex. Today, no business is safe. As hackers become more sophisticated, businesses have to take a realistic approach to protect themselves against cyber attacks and data breaches. It’s clear that paying an average cyber insurance premium will be an imperative investment should a breach occur.
New threats are constantly emerging, including:
- Social Engineering
Capitalizes on social interactions to gain access to data
- Cloud Vulnerabilities
Poses a major vulnerability to a variety of cyber attacks
Infects your network and hold your data hostage for a ransom
- Internet of Things (IoT)
Exploits through internet connectivity
- Outdated Hardware / Software
Attacks when updates in software leave hardware outdated
While an average cyber insurance premium may seem like an expense, paying for a data breach out of pocket can be catastrophic to a business. It’s important to plan ahead and adequately prepare for what could be the inevitable.
So Why Do You Need Cyber Security?
- Prevent Catastrophic Costs
As the cost of a data breach is rising, it’s imperative to protect your company from a possible cyber attack. In 2019, the average cost of a breach rose 1.5% from 2018, with $3.92 million as the global average. In addition to extensive IT charges and Public Relations costs, institutions have to consider legal fees, possible credit monitoring for those involved, and regulatory fines and fees. For many companies, the cumulative cost of these expenses can be enough to cause bankruptcy.
- Protect Your Reputation
A company is backed by its reputation and a cyber attack can damage or cause customers to questions just that. Although cyber attacks are increasingly common, an attack means instant bad publicity. It’s often much worse to attempt to keep a breach confidential as transparency is key in maintaining or regaining customer and consumer trust and avoiding legal penalties and fines.
- Safeguard Personally Identifiable Information
Maintaining the confidence of your customers, consumers, and even employees is crucial. Putting them at risk is a worst-case scenario for the well being of most companies. In addition, when Personally Identifiable Information (PII) is leaked or exposed, it’s often required that you provide credit protection measures for all of those who are affected. This can be a costly expense, in addition to the notification process for all involved.
- Count on a Coach Through the Recovery
While a data breach can cause a company’s reputation and public image to suffer, the timeframe in which a breach is addressed is even more crucial. A slow, unplanned, and unorganized response to a data breach can cause irreparable harm as the first few hours post-breach are crucial. A breach coach can walk agents and their clients through every step of the recovery plan to mitigate the damage as quickly as possible. Having a clear plan in place and someone to guide you through the process can save thousands of dollars, if not more.
- Shield Yourself From Any Future Attacks
Having access to an excellent risk management program will help you determine exactly what was breached and how to prevent this from happening in the future. However, pinpointing the exact cause can be a complicated and expensive process that adds on to the cost of the existing breach. Without insurance, these necessary costs would have to be paid out of pocket.
While all of the recent focus on cyber threats and security may seem exaggerated, the reality is it’s not. It’s important for companies to take the proper steps to plan for the inevitable and protect themselves. The average cyber insurance premium an essential investment for the well being of your institution.
Contact ProWriters Professional & Management Liability Insurance today for a no-obligation Cyber Liability Insurance quote today or call (484) 321-2335 to speak with an expert.