Large and small businesses risk security breaches
We might as well call them artists because their creativity knows no bounds. Cyber criminals are constantly outsmarting software developers and IT professionals.
The average annual cost of a cybercrime in the U.S. is $8.9 million, according to a 2012 study by the Ponemon Institute. That’s an increase of 6 percent over the prior year. The number of attacks are also on the rise. Each of the study’s 56 participating companies experienced an average 1.8 successful attacks per week.
Company data, not company size matters
These facts and the seemingly ceaseless headlines of high profile business breaches such as the Target’s are causing businesses to purchase cyber coverage. Only a few years ago, about 20 percent of larger companies buying cyber coverage. Today it’s about 50 percent, according to John Kerns, executive managing director for Beecher Carlson.
As IT professionals struggle to keep up with the risks, they’re encouraging companies to get coverage. The type and amount of data that financial, healthcare and retail businesses store put them most at risk. However, many small businesses also have lots of valuable data that makes them a target. They can also be at risk from hacker, user errors, or employee breaches.
Getting smaller companies on board
Most smaller companies don’t retain a legal teams and therefore aren’t kept up to date on privacy regulations that can leave susceptible to a lawsuit. Many also don’t realize the services that are added to this type of coverage. Risk management is one such service that provides professionals to deal with a breach. “With the coverage, you can have the panel already there for you and you know they can bring vetted resources to the table right away,” explains Lisa Doherty, president of Business Risk Partners.
It’s so easy to get a quote
Carriers are requiring less information these days to provide a Cyber Insurance quote as their comfort level grows with this new policy type. For many smaller business types, carriers can provide a Cyber Risk quick quote indication if you provide the answers to as few as five questions.
Source: Amy O’Connor“As Cyber Crimes Increase, so do Coverage Options,” My New Markets, 13 Mar. 2014.