Get ready for October! Cybersecurity Awareness Month is quickly approaching and we want to bring you some key considerations. Did you know that the average reported cyberattack cost among small businesses (fewer than 250 employees) in 2021 was roughly $25,600? Hiscox, an insurance provider, shared that number in a recent report and noted that that amount could be enough to shut down many small businesses.
Why is that important? Well, cyber insurance is a major option that businesses can and should utilize to help protect against losses resulting from cyberattacks. But, according to that same Hiscox report, only 41% of the businesses they surveyed carry some form of cyber insurance, leaving them vulnerable to the devasting financial consequences of a cyberattack.
It’s not just small or medium sized businesses that are at risk. Fortinet reported that a breach to Sony?s PlayStation Network in 2011 exposed the data of 77 million users and cost Sony over $171 million that could have been covered by cyber insurance, if they had had a policy that is. This added security layer can offer broad coverages to help protect businesses from various technology-related risks. Protecting your business with the right policy allows you to respond quickly after a data breach or cyberattack.
The following instances are a few that were identified by The Hartford as occasions when coverage can help your business:
- When a business? computers get a virus that exposes private, sensitive information.
- When your business is sued by customers or patients after losing personally identifiable information or personal health information.
- When you face high public relations costs to help protect your business? reputation after a data breach.
So, what should a cyber insurance policy cover? When looking for cyber insurance, you want to ensure that your business is protected from data breaches, cyberattacks, attacks on your data held by vendors and third parties, attacks that occur anywhere in the world, and terrorist attacks.
Now that you know what cyber insurance is and what it should cover, you should know that it?s important that your business have the proper protocols and systems in place in order for you to qualify for an insurance policy. Cybersecurity solutions like endpoint security, multi-factor authentication, compliance, threat management, and network security are just a few of the things insurance companies will be looking for when you attempt to gain a cyber insurance policy!
At Info Advantage, we know that dedication to the prevention of data loss and other business technology disasters before they happen is key. Your cybersecurity is our priority; we?re committed to protecting your business, your staff, and your customers. Ready to schedule a discussion? We’re ready to help. Stay tuned for more cybersecurity insights for Cybersecurity Awareness Month!