Cybersecurity Insurance a tool worth having
Cybersecurity insurance is becoming an essential tool in our digital toolbox. It serves as your umbrella on a rainy day — you might not need it all the time, but when it pours, you'll be glad you have it. In recent times, we've seen a surge in high-profile data breaches.
You might have heard stories of large companies, retailers, schools, or hospitals falling victim to cybercrimes, sometimes paying huge ransoms without getting their data back. It's a tough situation, often leading to a scramble to recover data through other means.
But here's something to consider: cyberattacks don't just target the big players. As Tim Quinn from Quinn Insurance, a partner of Prime Secured, notes, the media often overlooks the multitude of personal data thefts occurring each year. According to Tim, "The credit card industry alone faces billions in losses from smaller fraudulent claims. Big incidents grab headlines, but the smaller ones collectively pack a punch."
It's crucial to understand that every computer is a potential target. Automated hacking programs scan the globe, searching for weak spots in any computer they can find. They're building profiles on you, me, and everyone else. These hackers are opportunistic thieves, checking a thousand car doors in a parking lot, hoping to find one unlocked.
You might not consider yourself a prime target, but in our current world, flying under the radar isn't enough. Even if hackers don't gain much from you, the havoc they wreak can be costly.
Now, if the idea of cyber insurance hasn't crossed your mind yet, this might be the ideal moment to dive into some research. There's a whole world of options out there, waiting to be explored, to protect your organization. We hope this blog sparks your curiosity and serves as a stepping stone on your journey of investigation. It's all about finding the right fit for your needs, and we're here to guide you through it.
Understanding the Cost of a Breach
Many people don’t understand exactly how much a data breach could cost them. Even if you don’t incur any direct financial damage from fraud or extortion, the costs associated with being hacked can be astronomical.
For starters, federal law requires you to inform everyone affected by any breach—and that means everyone. You’ll have to determine everyone who was affected and how to contact them. Depending on your situation, this investigation can cost several times more than any ransom a hacker asks for.
Consider this real-world scenario: a lone employee, working remotely for a modest-sized company, overlooked enabling two-factor authentication. This seemingly minor lapse quickly caught the attention of hackers. In less than 24 hours, they exploited this vulnerability, gaining complete access to the employee's entire email archive — we're talking tens of thousands of emails. Fortunately, the breach didn't go beyond that. However, the aftermath wasn't so simple. The company found itself footing a hefty bill exceeding $20,000, covering investigation and notification expenses. It's a stark reminder of how small oversights can lead to significant impacts, emphasizing the importance of vigilance in our digital practices.
While it may not have been an eventful day for the criminals, it was devastating for the small business because they didn’t have cyber insurance—and that $20,000 price tag was from an attack where the hackers didn’t manage to get anything directly. Obviously, it’s even worse when they succeed.
Paying a Ransom is No Guarantee
A hackers only goal is to squeeze everything they can out of you. Even if you pay a ransom, there’s a good chance they won’t return your data. They might not even know how. Once the money is in their hands, they have no incentive to communicate with you further. They already got paid.
In fact, studies have shown less than 10% of victims in ransomware attacks get all their data back after they pay. Less than 30% even get half of what they lost. More and more companies affected by these attacks are choosing to pay up in hopes of getting a quick solution, but the statistics are clear: giving into demands won’t put an end to your woes.
Unfortunately, there’s no easy way out. And losing that data could potentially cripple your company, requiring months of work to make up for lost time and possibly putting an end to professional relationships. Your clients may not feel safe working with you, or they may simply have to move on to using another company while you recover. Most companies simply don’t have the war chest they need to sustain themselves after a loss like that. It’s important to understand that these attacks are common and to make sure you’re protected. We have an impressive library on tightening up your cybersecurity strategies for you to checkout.
Cyber Insurance Can Protect You From the Crippling Loss of a Cyber Attack
Of course our first approach is having secure systems is the first line of defense against these attacks. While having top-notch technology is a significant advantage, it's not the only consideration. The human element plays a crucial role. Cybercriminals often target employees, using clever tactics to appear as trusted individuals or exerting pressure to gain access. It highlights the importance of a holistic approach to cybersecurity, combining technology with cybersecurity awareness training.
You can never be completely sure you won’t become the victim of a successful cyber-attack. But with a comprehensive cyber insurance plan, you can be confident your company will survive if the worst happens. Depending on your plan, insurance can cover any direct financial losses but also cover the cost of forensics, lost business, and recovery of lost data.
The world of cyber insurance is rich with choices, offering a spectrum of coverage options to suit different needs. You'll find that these options can be acquired individually or bundled together, providing a customized fit for you and your company. Your unique plan will be meticulously crafted, taking into account your specific risks and concerns.
Given the complex and multifaceted nature of cybercrime, which can lead to various forms of damage, the range of available coverage options is extensive. This diversity ensures that you can select a plan that aligns perfectly with your organization's particular cybersecurity profile.
Secure Systems are a Must for Cyber Insurance
While cyber insurance can keep your company afloat when disaster strikes, it can’t keep you safe by itself. It’s important to have systems that are as well-protected as possible even when you’re insured.
Besides the obvious benefits of making a catastrophic event less likely, if your systems are secure, you’re likely to get a much more affordable quote from the company providing your cyber insurance. In fact, most providers are unlikely to cover a company that doesn’t at least have some of the basic defenses such as Multi-Factor Authentication (MFA) and Endpoint Detection Response (EDR).
These protections are necessary because insurance providers know how high the risk of an attack is. But a company that values its digital security should have these protections either way. It’s far better to avoid suffering a damaging attack in the first place.
Protect Yourself from Cybercrime Before Disaster Strikes
Ransomware and other cyber attacks are becoming more and more frequent as hackers adapt to automated tools and scraping the internet for data. On average, 4,000 ransomware attacks occur in the U.S. every single day. The big crimes make the news, but you don’t hear about the majority of attacks, which are carried out on individuals and small organizations.
“They’re hitting a billion IP addresses looking for vulnerability. We are under constant attack,” Quinn said. “That’s what’s going on here, and it’s morphing fast. But you can’t see, feel or hear it. It’s just a rogue silent ‘killer.’”
Unfortunately, many people don’t realize how devastating a cyber attack can be to their company until it happens to them. And many smaller organizations make the mistake of thinking they’re safe because they don’t have intrinsically valuable data to target. But even if hackers don’t get anything out of it, you still could suffer catastrophic losses. The reality is, every organization should be prepared and have a plan in place before an attack happens.
If you want to learn more about cyber insurance or have questions about how you can best protect your data and your company, visit Prime Secured. Prime works daily with experts such as Quinn Insurance and our own staff of IT security engineers. We can help you protect your digital property.
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