5 Reasons Your Business Needs Cyber Coverage

Rarely does a week go by where we don’t learn of a new data breach or cyber attack that has shaken an organization. Cyber events, such as the very public breach at CapitalOne, are now a regular occurrence for organizations of all types, sizes, industries and regions. Cyber events are no longer viewed as an if, but as a when we get hit type of exposure. As with any exposure, risk management is a critical component of your business strategy. Cyber insurance is now a regular coverage that organizations are integrating into their business insurance coverages.

Here are 5 reasons why your business needs cyber coverage:

  1. 49% of organizations that suffered from a cyber attack were successfully attacked again within one year.
  2. 2018 saw ransomware attacks on enterprises increase by 12%.
  3. Last year, more than 4,800 unique websites were compromised by formjacking every month. Formjacking is when cyber criminals load malicious code onto a retailer’s website that is designed to steal consumers’ credit card information. Details from just one stolen credit card can fetch upwards of $45 in black market selling forums.
  4. The average cost for each lost or stolen record containing sensitive and confidential information increases by nearly 5% year over year to $148 per record.
  5. The main causes of data breaches in the United States are malicious/criminal attack, human error and system glitches.

Cyber insurance can provide coverage for third-party liability as well as first-party expenses. This may include coverage for the costs of notification, expert/forensic analysis, system improvements, ransom, restoration/recovery, public relations services, and the loss of income while down. Products include pre-breach analysis with designated coaches to help you estimate the potential costs of an event, as well as a sample incident road map for dealing with a breach when it happens.

The time to review your cyber exposure is before a breach happens. How will you manage the breach? What are the anticipated costs associated with an event?

Contact a member of the McConkey team to learn more about cyber coverage and how you can integrate this coverage into your current business insurance portfolio to better protect your organizations’ assets.

Kurt Gehman, CPCU

Author Kurt Gehman, CPCU

Business Insurance Executive
kgehman@ekmcconkey.com
717-505-3178

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