Is your management team mitigating risks around cyber-attacks? Is this a line item and key performance indicator discussed at your management meetings? If the answer is yes, you should congratulate your team and if not it should be.
The cost of a claim could cripple and possibly bankrupt your organization if you choose to ignore the severity of it. Today no business is immune from cyber-attacks. The federal government isn’t and your business either small, medium or large isn’t either.
What Actions Are Required?
- Make sure you have an I.T. team either in-house or outsourced who can mitigate risk, ensure they have cyber security expertise. Routine checks and surveillance are a must. The team should table all findings both good and bad with key management on a regular basis.
- Ensure you purchase the right insurance coverage for cyber security issues. This is known as cyber liability coverage. There are many policy types to choose from and new coverages to add to these policies. It is important to choose an advisor who can review your business risks and offer the best solution and pricing.
Why Invest In Cyber Liability Coverage?
Cyber liability coverage should be part of every company’s risk management program. The projected annual damage cost of cybercrimes in 2021 is expected to be $6 trillion. Companies are being bombarded with cyber hacking attempts on their website and through emails on a daily basis. These hackers are similar to car thieves going through a mall parking lot trying to find out which car door is unlocked. The first unlocked car they find will be the one they take.
Causes of Cyber Security Breaches
The number of cyber-attacks resulting in ransoms is on the rise. This is due to numerous factors including:
- Remote workers with weak firewalls.
- The vulnerability of production equipment programming which is easy to infiltrate.
- The lack of employees verifying emails coming from outside your organization are legitimate.
These claims are also very expensive and have risen from $325 million to $5 billion in the last three years. The majority of cyber-attacks are the result of phishing emails. We recently had a client that had a ransomware demand of $400 thousand and another had a demand of $750 thousand.
The Opportunity Costs Of Not Having Cyber Liability Insurance
The coverage is inexpensive when compared to the cost of a claim. We have great markets for this along with a knowledgeable staff that understands the process. Be sure you have the proper coverage for your company.
If you would like an assessment of your cyber security risk and explanation of the coverage we would appreciate the opportunity.