As technology advances and more and more businesses are storing their records and data virtually, the threat of a cyber attack is becoming inevitable. In 2021, the rise of remote and virtual work led to more frequent and expensive cyber-attacks.
On average, a remote work breach led to a cost of $1M more compared to group working ($4.96M vs. $3.89M). Most of these attacks are in the form of ransomware; a hacker requiring some form of compensation, and they will release the data they stole back to the business owner.
With the increase in popularity of cryptocurrencies, almost all ransomware attacks are requesting payments in the form of Bitcoin. The US Treasury currently has over $5 billion tied up in Bitcoin transactions revolving around ransomware.
Like many scenarios we hear about, the natural human mindset is “this will never happen to me”. It does not matter the size of the company. All companies are targets for cyber-attacks. From the mom-and-pop store on the corner, to industry giants like Facebook and Target, these companies have all experienced cyber threats.
On average, the typical attack may cost a company around $3 million. Almost 50% of all small businesses do not have any form of cyber protection. Having a Cyber Insurance policy is becoming a must have and now, more critical than ever.
During these times, Cyber policies are affordable to companies of all sizes. Having a conversation with your agent is the first step towards protecting yourself from being the victim of a cyber crime.
Our agency had a recent success story with a client tht owns a mortgage company. The client had a break in to their office and all their hard drives were stolen with their client’s personal information. The Cyber carrier stepped in within a few hours of being notified.
The typical cost to protect and monitor a client’s data is around $1,000. With several hundred clients, had this company not had a cyber policy, this would’ve cost the business well into the hundreds of thousands of dollars to protect and monitor the information that was stolen.
Thankfully with the cyber policy in force, the costs of the stolen data monitoring and protection was fully covered and the only out of pocket expense was the company’s deductible.
With technology constantly evolving, the question is no longer “if it happens”, but “when it happens”. Take control of your cyber security before it’s too late.
Reach out to one of our agents today at (303) 279-7900 to see how a cyber liability policy can protect your business.
Article by Derek Finger
Derek has been working in the insurance industry for the last four years, but has been around the industry his whole life. Derek is an entrepreneur and enjoys working with like-minded business owners and operators to help them build strategies
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