Businesses and Recent Rise in Cyber Attacks

Is your business prepared for a cyber attack? Though a grim reality many organizations would prefer to ignore, cyber attacks are becoming increasingly common and can devastate companies of all sizes.

If you want to effectively improve your cybersecurity, cyber insurance can help.

Cyber insurance can help protect your organization from the costs associated with a data breach, including damages, forensic investigations, and credit monitoring services for affected individuals.

But not all policies are created equal. Read on to learn what you need to know about the recent rise in cyber attacks and the effects on cyber insurance.

Cyber Insurance Policies Vary

Cyber insurance is essential for protecting your business from the growing threat of cyber attacks, but it’s necessary to ensure you’re getting the right coverage for your needs.

Since cyber insurance policies can vary widely, it’s critical to understand what your policy covers and how much protection it provides.

  • Just like any insurance policy, make sure to read the fine print and familiarize yourself with any exclusions or limits on coverage.
  • Additionally, make sure that your policy covers you in the event of a cyber attack (versus general cybersecurity coverage).

In today’s increasingly digital world, cyber insurance is vital for any business that relies on computers and the internet. By working closely with their insurance providers, organizations can ensure they have the coverage they need to protect themselves from the ever-growing threat of cybercrime.

In fact, according to the IC3 (Internet Crime Complaint Center), reported monetary damage caused by cybercrime increased from $1 billion in 2015 to $6.9 billion in 2021.

But the amount of estimated unreported cybercrime is much more staggering. According to Cybercrime Magazine by Cybersecurity Ventures, estimates of the global damage from cybercrime in 2021 was approximately $6 trillion. If current trends continue, Cybersecurity Ventures estimates that global cybercrime damages will reach an astounding $10.5 trillion by 2025.

Cyber Attacks Escalating & Increasing Cyber Insurance Costs

Cyber insurance has always been a niche product, with companies offering specific coverage to protect against data breaches and cybercrime. But, in the past year, the price of cyber insurance has soared amid growing ransomware hacks and other cyberattacks.

“Given these realities, insurers are taking a harder line before renewing or granting new or additional coverage,” according to an article by the Wall Street Journal.

Insurance Companies Are Getting Smarter About Cybersecurity

In the wake of the recent surge in cyber attacks, insurance providers are taking a closer look at the policies and procedures of the businesses they cover. For starters, insurers are asking for more information about companies’ actions to protect themselves from hackers.

While this may be seen as a hassle by some businesses, it’s an essential step in ensuring that companies are adequately protected in the event of an attack. By understanding the measures companies are taking to guard against cyber threats, insurance agencies can better assess the risks and tailor their coverage accordingly.

How to Decrease Cyber Insurance Costs

In the event of a cyber attack, organizations need to have an effective disaster recovery plan in place. What’s more, cyber insurance companies want to know what these recovery plans are and how they’re tested.

Insurance providers also want to know what measures are in place to prevent cyber attacks from happening in the first place. With this information, they can accurately assess the risk of insuring a company and determine cyber insurance premiums.

In some cases, insurers will even ask companies to increase their deductibles; while in others, they exclude certain types of cyber risks from coverage altogether. As a result, businesses are looking to cybersecurity firms to help mitigate the cyberattack risk.

By working directly with cybersecurity experts, businesses can reduce the chances of a cyberattack and access better cyber insurance rates.

Should Business Owners Get Cyber Insurance Coverage?

Businesses ask if cyber insurance is worth it, and the answer is a resounding “YES!” With data breaches on the rise, companies must proactively protect both their customers and themselves.

Cyber insurance, in combination with a reliable cybersecurity solution, can help businesses recoup some of the costs associated with a data breach, including notification expenses, credit monitoring for affected customers, and legal fees.

Looking for a customized cybersecurity solution for your business? Don’t hesitate to schedule a free consultation with us at ClearTech Group.