It’s getting really bad out there for cyberattacks and hacking. The most recent cybersecurity breach wiped out $2 billion in market capitalization. A company lost billions in share value due to a hack they failed to defend against. Many cyber insurance policies offer automatic defense and protection, yet this company fell victim to the breach.
Recovery Challenges Post-Cyber Attacks
When it comes to recovery after a loss, nearly one-third of data backups fail following a ransomware attack. If your system is hacked and data recovery fails, there’s a one-in-three chance of facing this setback. Implementing robust cyber insurance, defense strategies, and best practices can prevent such failures.
The Hesitancy of Purchasing Cyber Insurance
Despite the doom and gloom of cyber threats, the narrative isn’t motivating businesses to invest in cyber liability insurance. In conversations with hundreds of businesses monthly, very few perceive an immediate need for this coverage. While some adopt cyber defense measures, the majority don’t prioritize acquiring insurance against cyber threats.
The Decision-Making Conundrum
Determining whether to invest in cyber insurance isn’t a straightforward decision. Each business must spend a few hundred dollars a month or year for this coverage. However, the potential consequences of a cyberattack can be catastrophic. The risk of it occurring might outweigh other perils like fire, liability, or slip-and-fall incidents.
Mitigating Risks: The Essential Steps
Regardless of whether a business opts for insurance, implementing best practices is crucial. Ensuring your business isn’t among the 60% that shut down after suffering a cyber attack requires proactive steps. Investing in cybersecurity, even without insurance, can safeguard your business from significant losses.