One in five businesses fall victim to a cyberattack, but those numbers are already on the rise. Cybersecurity incidents rose 600 percent during the COVID-19 pandemic, putting the importance of complete cybersecurity protection in the spotlight.
While there are plenty of software solutions in today's market to combat attacks, there is only so much that technology can do. The reality is that no company is completely secure, and there is always the risk of a cybersecurity breach leaving a devastating impact on your business. While major corporations can often survive a cyberattack, 60 percent of companies that fall victim to won't recover.
While there are plenty of proactive steps that every business leader should take, cyber liability insurance should be one of the core elements of every backup and disaster recovery plan. This type of insurance caters directly to today's digital world, providing the resources that businesses need to bounce back after an attack.
The Hartford, one of Lowry Insurance's trusted partners, defines cyber insurance as a type of policy meant to provide more coverage and prepare for, respond to and recover from cyberattacks toward their organization. There are a wide range of coverage options available from each carrier, but this type of insurance is important for peace of mind that you'll be able to cover the costs that come with making a long-term recovery that allows you to continue supporting your business and its employees.
While each policy varies, cyber insurance generally covers both the cost of a breach and the cost of claims and lawsuits resulting from it. The cost of a breach can include crisis management, ransom payments for ransomware attacks, and the cost of data restoration, among other situational items.
43% of cyberattacks target small businesses. Without large-scale IT departments, small businesses are even more likely to need cyber liability insurance to protect them in the digital world. While a larger corporation can often bounce back and recover quickly, small businesses are more likely to be underprepared to recover from an attack. This can lead to extensive data loss and downtime that can have a devastating impact on the business itself.
While many longtime business leaders may see cyber liability insurance as an unnecessary expense, being fully prepared in the event of a cyberattack can be the difference between a timely return to normalcy and the end of the road. Cyber liability insurance not only delivers protection, but peace of mind that your business is protected in today's digital world. Our team at Lowry works with each client to build custom business insurance solutions around your needs, creating a policy that protects every angle of your operation.