The numbers are spiking! (No, we are not talking about COVID-19)
According to a report, there was a 30% increase in reported cyber attacks in the three weeks between 4/27/20 to 5/15/20.
Remote workers were targeted by up to 65,000 impersonation attacks, according to another report. This scam called “spear phishing” uses branded sites to trick victims into sharing their login credentials.
One study suggested the average cost to correct a data breach is approximately $8.19 million in the U.S. and $6.45 million for the Healthcare Industry.
Small businesses are hit more than 10x harder than large organizations (based on cost per employee).
The biggest cost amplifiers are third party involvement, cloud migration and IT complexity.
The chance of experiencing a data breach in 2019 was almost 30% and is increasing.
In a recent survey:
- 67% of respondents said they plan to spend more on cybersecurity technology and mitigation in the next 3 years.
- 53% will spend more on staff training.
- 40% will spend more on cyber event planning and preparation.
- While ONLY 34% plan to spend more on cyber insurance.
First, this may be due in part to the misconception that cyber exposures are covered by property or general liability policies, unfortunately, some of these policies are trending toward excluding or limiting coverage for cyber.
Further, many do not know that outsourcing to a third-party provider does not necessarily outsource the risk or exposure.
Also, business owners may not be aware the drivers of cyber claim costs are business interruption and incident response costs.
Lastly, cyber may be a contractual requirement in some jurisdictions and some industries.
Cyber Insurance is essential to recover losses like:
- Business Disruption/Interruption
- Revenue Loss
- Equipment Damages
- Legal Fees
- Public Relations Expenses
- Forensic Analysis Costs
- Legally Mandated Notification Requirements
Cyber Risk Management professionals can recommend pre-breach avoidance plans like:
- Creating, implementing and testing business continuity plans and incident response plans
- Considering secondary systems that are regularly tested
- Implementing an intrusion detection system
A Data Breach . . . It’s not IF, but WHEN!
Be prepared with Cyber Insurance with
The Whitlock Group!
To learn more call or email Greg Whitlock at 678-906-2008 or firstname.lastname@example.org
This article is for information only. It is not a full description of your risk for data breach and is not a full description of insurance coverage. Please keep in mind no policy is the same, so please review your current policy to determine what coverage you do have and what may be excluded therefore leaving potential coverage gaps.