What would happen if your business were to suffer a cyber-attack today? From regulatory fines, lawsuits, data recovery, and software repair, the list of possible expenses that occur after a cyber security breach can be staggering. Could your business cover those costs – especially without any notice?
For many business owners, the answer is NO.
A recent study conducted by the Ponemon Institute reported that the average cost of detection and recovery from a single cybercrime event is $5.9 million per year per company. The costs of a single breach could cost your company anywhere from $1.5 million to $36.5 million. Fines, lawsuits, and recovery fees are only a part of the equation. You must also consider the lost revenue that occurs when your business cannot operate – waiting to get computer systems back online.
The point is that cybercrime is expensive and if you aren’t prepared for it, the costs could quickly bring your business to its knees. The good news is that insurance is available to help mitigate these costs and get your business up and running as quickly as possible. Just as your business carries general liability insurance and other insurances designed to protect your business when something unexpected happens, cybercrime insurance protects your business should a data breach occur.
Hackers and other cybercriminals have lots of tricks that can disrupt daily business operations. From Denial of Service attacks that result in lost income to cyber extortion tactics designed to strong arm your business into paying a ransom, the number of ways your business technology assets can be threatened seems to grow larger every day.