You Can’t Avoid This Danger…But There’s Cyber Insurance

If you’re reading this, you own one of the most dangerous tools in business today – an internet connected computer. Dangerous? You bet. Consider the following:

• There are now more than 1 billion malware programs out there, and 560,000 new ones are detected every day.
• 3.4 billion phishing emails are sent daily, and 32% of them come from Russia.

• Each minute of every day, 4 companies fall victim to Ransomware. Source
• The average ransom paid to retrieve encrypted data was $500,000 in 2023, but increased to more than $2 million in 2024.
• “Man in the middle” attacks involve the interception of sensitive information such as login credentials and banking information and caused $2 billion in losses in 2020.

• In 2022, the average “Advanced Persistent Threat” attack lasted 146 days and cost the company $4.8 million, according to a report by Accenture.
• 43% of attacks are against Small businesses and cost the company from $100,000 to over $1 million

Convinced? Sadly, there’s no way to avoid all of these threats. But you can prepare for them by purchasing Cyber Protection and Cyber Insurance.

What is Cyber Protection?

Cyber Protection services are offered by many IT Service Providers. They typically include an in-depth IT audit of your network, desktops, laptops, applications, and policies, including:

• Hardware and software risk assessment
• Data storage and use risks and mitigation
• Firewall and antivirus reviews and updates
• Employee education about common risks on email and text
• Writing and enforcing banking policies and payment approval mechanisms
• Review of cyber insurance policies and recommendations
• Establish recovery plans and contingencies

These services can be pricey and recurring (things change all the time) but adding just a few pieces of new hardware to an office network can significantly reduce your risk, and having the help of an IT pro to teach employees best practices is priceless.

Cyber Insurance, on the other hand, provides some peace of mind in the worst case scenario. 

What is Cyber Business Insurance?

Since you cannot protect yourself from 100% of the threats, cyber liability insurance helps cover financial losses from data breaches if and when it happens. And the expenses are more than you probably imagine.

• Direct costs, such as a ransom paid for your data, or restoring drives damaged by viruses
• Loss of revenue from the interruption to your business while you deal with the attack
• Regulatory compliance costs to notify your customers that their data might have been compromised
• Compensatory costs to provide identity theft protection to your customers or otherwise settle your clients claims against your negligence
• Reputational costs as you fight the PR battle when people find out that you allowed their data to be stolen

Look for a great cyber policy from your insurance broker and be aware of what is not covered by your policy, such as insider threats or acts of terrorism. 

Protect Your Business Today

Cyber protection – both proactive and reactive is not just a safety net; it’s a strategic investment in your business’s security and longevity. By assessing your risks, understanding your coverage needs, and implementing cybersecurity measures, you can safeguard your business against cyber threats.

Remember, proactive measures and clear communication with your insurer can turn cyber insurance from a backup plan into a crucial part of your business strategy. Schedule your free business analysis today, and let us help you navigate the complexities of cyber business insurance.