With the ever-increasing concern about cybersecurity, businesses should consider integrating cyber liability insurance into their risk management program for several reasons. Here are three of the biggest.
Cyber Threats Are on the Rise
Cybersecurity is one of the biggest concerns faced by businesses today. According to Risk Based Security’s Data Breach QuickView Report, over 4.1 billion records were exposed through data breaches during the first half of last year, and experts expect the number of cyberattacks to increase in 2020.
Cyber Threats Affect All Organizations
Although healthcare remains a large target for data breaches, cybercriminals don’t discriminate. IBM’s Ginni Rometty sounded the alarm when she said, “Cybercrime is the greatest threat to every company in the world.” Within the last year, over half of all small businesses were impacted by a data breach. Research conducted by Accenture found that small businesses were the target of 43% of cyberattacks.
Cyber Liability Insurance Provides Coverage for Loss
The costs associated with a cyberattack can be staggering, especially for small businesses. According to Axis, customized cyber liability insurance can provide coverage for the costs and expenses related to responding to a cyber incident including the following:
- Network security
- Privacy breach response
- Network asset protection
- Regulatory defense and penalties
- Multimedia insurance
- Business interruption
Cyber liability insurance should be considered for all businesses. It’s not a case of if a cyberattack will happen, but when.