Is Your Business at Risk for Cyberattacks

Cyberattacks are a new threat that businesses of all sizes and shape face. Hackers don’t discriminate between industries or locations. They’re after information, and every business has it. To respond to this new risk, the insurance industry has developed a new type of insurance: cyber risk insurance. No matter what type of business you have, you should at least learn about the new risks that your company faces and how you can use insurance to protect it.

Is Your Small Business Covered?

Cyberattacks Are Costly

Few companies have the resources necessary to recover from a cyberattack. According to IBM’s 2015 Cost of Data Breach study, the average data breach cost $3.8 million to recover from. While this figure includes data breaches at large corporations, successfully attacks on small companies are still costly. Recovering from a cyberattack is so costly because there are many indirect expenses. For instance, if hackers successfully attack your business and steal data, your company might:

• have to replace compromised equipment or update old hardware

• be legally required to compensate those whose data was compromised

• lose customer or vendor records

• spend a lot of time recovering from the breach

These costs that your company might incur don’t include the price of a forensic investigation that the police or other authorities might conduct.

Cyber Risk Insurance Provides Protection

Cyber risk insurance is a relatively new type of insurance that’s specifically designed to provide protection against losses like these. Coverages vary among policies, but some of the coverages your business might be able to take advantage of include:

• liability coverage that might provide compensation to the affected parties

• loss or corruption of data coverage that may help recover obscured records

• business interruption coverage that might compensate your company for the time spent recovering from the breach

These are just a few of the coverages that might address the specific expenses mentioned above. Other, more specific coverages, include options like cyber extortion coverage and crisis management coverage.

If your company hasn’t addressed this new risk, contact us to learn more about cyber risk insurance. Every business is at risk, but there is also protection available for every company. Our agents will help you assess your company’s specific risks and update its insurance portfolio accordingly.

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Risk Ink Solutions - 105 W Chickasaw St, Brookhaven, MS 39601 - 601.835.5070