Our Analysis
Who needs Cyber Insurance and why?
- Every business that uses technology has cyber exposure. Cyber Insurance provides organizations with coverage options to protect them from data breaches and cyber security risks. Cyber Insurance is a critical safeguard against a cyber attack and the resulting consequences.
- According to the 2023 Travelers Insurance Risk Index, 58% of business leaders participating indicated cyber risks were a big concern. 54% of those surveyed think it is inevitable that their business will be a victim of a cyber attack.
- Cyber attacks are not random. Companies with vulnerabilities are targeted.
- A single attack can shut a company down for a long time.
- In 2023, 23% of businesses surveyed reported being the victim of a cyber event.
- The top cyber events businesses experience are:
- Security breach 32%
- System glitch 31%
- Employees putting information/systems at risk 29%
- Theft of loss of customer/client records 27%
- Extortion/ransomware 24%
Our Actionable Advice
What does Cyber Insurance cover?
- Cyber Insurance may help cover costs from data breaches and cyber attacks on your business. These costs may include:
- Lost Income
- Notifying customers affected by a breach
- Recovering compromised data
- Repairing damaged computer systems
- Coverage options typically include:
- Forensic investigations
- Litigation expenses
- Regulatory defense expenses or fines
- Crisis management expenses
- Business Interruption
- Cyber extortion
- Betterment coverage to improve a system after a breach, when recommended to eliminate future vulnerabilities
Being prepared is the best defense. Consider these Cyber Security Best Practices:
- Implement Multifactor Authentication (MFA)
- Keep systems updated
- Create an Incident Response (IR) Plan
- Back up your data
- Protect data at your workspace
- Be aware of phishing schemes
- Create stronger/longer passwords
- Be on guard while traveling or working remotely
The Big Takeaway
The Whitlock Group has over 30 years of risk expertise and experience managing and mitigating Cyber Risk. Contact us today for comprehensive business insurance solutions or if you’re unsure whether your business is covered adequately.
Greg Whitlock, President
GWhitlock@twgins.net
678-906-2008 ext. 1200
Cell: 404-218-8706
Additional resources:
- “4 Ways Cyber Insurance Protects Your Business,” Travelers
- “5 Ways to Protect Your Company’s Data,” Travelers
- “5 Cyber Readiness Practices to Boost Your Cyber Security,” Travelers