Cyber insurance is an often neglected, yet crucial aspect of an organization's security posture. Only about 21% of small businesses adopt some form of cyber liability according to Forbes. Perhaps one of the biggest reasons for this is that organizations, but small businesses in particular, don't understand the value of a stand alone cybersecurity liability policy. However, in today's security landscape cyber insurance is no longer an option. Read on to learn how cyber insurance can benefit your organization, and why it is important to consider for the future security of your business.
According to Verizon's Data Breach Investigation Report 2023, the median cost of a successful ransomware attack is $26,000, but can extend upwards of $2.25 million. For many small-medium sized businesses, this may mean life or death for the company. Cyber insurance can help shoulder the financial cost of a data breach or ransomware attack including ransom payments, legal fees, and the cost of new hardware/software. Cyber insurance may also reimburse businesses for downtime or business lost as a result of a cyber attack. Data compromise isn't the only threat to a businesses income, and extended downtime can prove just as deadly for a small company.
Additionally, separate, standalone cyber policies can help provide advanced tools and resources to SMBs that weren't previously accessible. Oftentimes, small-medium sized businesses lack the staff, experience, and tools to effectively protect themselves against advanced, enterprise level threats. A strong cyber insurance policy can provide these businesses with forensics, and remediation tools to help diagnose how the attackers got in and what can be done to "fix" the problem. These resources may also include the enlistment of data recovery specialists or a managed service provider (MSP) to offer further assistance.
Cyber insurance has gone from a suggestion, to a necessity over the past several years as the frequency and sophistication of cyber attacks rise. This is why it is important for every organization to see the benefits that standalone cyber policies can provide for their overall security posture.
Sometimes the nature of cyber attacks aren't as tangible as other workplace disasters, but that doesn't mean they can't be dangerous. A businesses first step should be to recognize the potential impacts that a sophisticated data breach would have on their operations. This includes creating an inventory of the business assets that may be at risk in the event of an attack. You should also conduct consistent security assessments to understand where your vulnerabilities lie and what you need to patch.
Many insurers will withhold payouts if they believe an attack was caused by negligence on the company's part. Luckily, an MSP like CorpInfoTech can help assess your infrastructure for gaps and remediate them. Also, your cyber insurance shouldn't just be one part of an existing policy. Cyber insurance, as its own standalone policy, is crucial to protecting business assets.
Cyber Insurance is an often neglected, but integral part of a businesses cybersecurity plan. Don't wait for an attack to happen before considering how a cyber liability policy may help you! Let’s start the process today - contact CorpInfoTech
More Cyber Insurance Information: CorpInfoTech’s Cyber Insurance Whitepaper
CorpInfoTech (Corporate Information Technologies) provides small to mid-market organizations with expert I.T. services including compliance assessment, cybersecurity penetration tests, and comprehensive business continuity planning services. CorpInfoTech can help organizations, quantify, create, refine, and mitigate the risks presented by business threatening disasters in whatever form they may be disguised.