In recent months, there have been many high-profile hacks, such as the WannaCry hack that disrupted computer services across multiple countries and the cyberattack on Atlanta’s computer networks that all but shut down their government functions.
These cyberattacks have shown just how much money, time, and effort can be lost from a cyberattack, and just how imperative it is to have cyber insurance for your company.
When you have cyber insurance, your insurance can pay out claims if a business has expenses from a breach. Claims can also be filed to recoup losses from expenses related to the breach response.
Statistics show that the demand for cyber insurance is increasing
According to Insurance Business magazine, the demand for cyber insurance has skyrocketed over the past few years as cyberattacks have become frequent. Total annual cyber insurance premiums have increased from an estimated $1 billion in 2012 to $3.25 billion in 2016; growth is expected to continue.
Cybersecurity insurance is most sought after in the retail, healthcare, and technology sectors, but many smaller companies forego cyber liability insurance even though the risks facing them are often as great as the risks facing larger companies.
A cyberattack doesn’t just affect a company’s immediate sales — it also affects their credibility with customers
A corporate hack can have serious ramifications when it comes to company expenses. If a ransomware attack encrypts data, then the company is losing money every minute from a loss of productivity and sales. If the company is an online retailer and their website is compromised, this can almost be a death sentence.
First, the company will lose money and sales immediately as the hack occurs. But, the company will also lose potential future sales as customers may not trust them with their credit card information even after the attack. The same is true of financial institutions such as banks and credit lenders. If an organization such as this is compromised, then the loss of faith and credibility with the general public can have a financial impact for years to come.
Best practices for dealing with cyberattacks
When it comes to best business practices, it is obvious that every business or organization should have a contingency plan in place in the event of a cyberattack. Some would argue that this is not “in case” an attack occurs, but more likely “when” it occurs as it is more and more likely that your company will one day be a victim. This plan should include exactly who is responsible for things such as backups and restoration of data. But it should also include a plan for how much the company anticipates that they will lose in the event of such a hack.
Ways INSUREtrust helps businesses find out how much cyber insurance they need
By running hypothetical plans of what could happen and using risk modeling tools, INSUREtrust can help businesses estimate just how much they might lose if a data breach or a full interruption of business occurs.
If an attack does occur, the IT department will be focused on clearing the breach and shoring up the security of the network. But the business and accounting side of the company should be closely monitoring sales to see how closely the estimates match up with the reality when it comes to business losses.
Cyber insurance can be used to pay out for business losses. Call INSUREtrust today at 1-888-WEBRISK to find out how we can help protect your business from cyberattacks.