Cyber hacks are on the rise, cyber criminals are getting smarter and more daring, and there’s seemingly no end in sight. Over 50% of U.S. businesses have experienced a cyber attack in the last 12 months and the costs associated with these breaches can cripple a business if it doesn’t have a cyber insurance policy.
Over 72% of businesses that experienced a breach (according to a nationwide survey released by Hartford Steam Boiler Inspection and Insurance Co.) spent over $5,000 on investigating the incident or on hardware or software restoration or replacement. Cyber attacks typically come in the form of malware, viruses and, increasingly, denial of service attacks and ransomware. Cyber attacks often require data restoration, hardware and software rebuilds, and notification costs. They can also cause losses associated with the long-term effects of negative attention and reputational damage.
Think your business is safe because you have a sound digital-use policy and smart data management? Think again. Many victims have top-of-the-line information technology departments.
Cyber insurance can play a crucial role in minimizing your business’s losses. Get an evaluation of your exposures and a lineup of coverages that can help if you become a victim by talking to your Sparks Insurance agent today.
RELATED: Read Playing it Safe: Cybersecurity for Small- to Medium-sized Businesses
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