Cyber attacks and cyber terrorism are no longer an exclusive concern
for large business enterprises like banks, auto companies, credit cards issuers and government agencies. The growth of cybercrime, from hacking into your company website and stealing email addresses and financial information to the rogue installation of ransomware (locking up your business until you pay the criminals money), has become a massive concern for businesses of all sizes.
According to Small Business Trends, 43% of cyber-attacks are targeted exclusively at small businesses.
It makes sense if you think about it. It’s much easier to attack a small business that can’t afford a big company’s security defenses. As an example:
NetDiligence's 11th annual cyber claims study evaluated 5,797 claims arising from incidents between 2016 and 2020. Across the five years of claims data, ransomware accounted for 32% of all incidents affecting small to medium enterprises (SMEs). Hacking incidents were a distant second at 10%, and business email compromise followed at 9%.
Professional services firms were found to have the highest frequency loss over the last five years, followed by manufacturing, health care, technology, retail and financial services. The top five sectors account for 70% of claims and 74% of total incident costs.
Autumn Insurance is a long-time partner with Auto-Owners and they promote sound practices, even to agents at Autumn. Recently they asked us to not re-use passwords for them that we use at Autumn.
The good news is that Autumn Insurance has a policy defense that small businesses like yours can take advantage of today. And if you think your current business insurance policy already covers you, you need to look again. Many general business protection policies only partially cover damage from cyber events, if at all. Cyber coverage protects against the vast array of possible damages, expenses, and lost business that can occur from a cyber attack.
Autumn Insurance offers cyber insurance, including:
First-party coverage – Intends to cover damages a business suffers because of a cyber breach. This coverage can include things like investigative services, business interruption coverage and data recovery.
Third-party coverage – Intends to cover damages if a business’ customers or partners are affected by a cyber attack. This coverage can include legal fees, settlement costs, security failures and media liabilities.
Cybercrime — Intends to cover damage due to any type of illegal activity that occurs using digital means. Examples of cybercrime are extortion/ransomware, phishing, social engineering, and wire transfer fraud.
The prevalence of cyber terrorism in our technology-dependent landscape makes your business much more susceptible to some very evil and very smart people who want to take your business down. Consider the following statistics:
- It takes half a year to detect a data breach.
- 91% of attacks launch with a phishing email.
- A business falls victim to a ransomware attack every 14 seconds.
- 38% of malicious attachments are masked as one Microsoft Office type of file or another.
- Companies faced an average of 22 security breaches in 2020.
- The global cost of online crime is expected to reach $6 trillion by 2021
Being adequately protected helps, but there is no way to protect against new threats fully. Hackers are constantly adapting to overcome cyber defenses with new versions of current threats or creating brand new methods of attacking businesses. Human error can also be a factor. Easy-to-hack passwords, phishing emails, or even a lost laptop also present potential entry points for a cyber-criminal.
Additionally, a third-party vendor could be attacked, impacting your ability to do business and exposing your data. Even if you use a third-party vendor for business services, you may be legally responsible as the data owner.
A thorough cyber insurance policy is part of your overall risk management plan to ensure your business runs smoothly.
Call us today at 248-478-1177 and Autumn’s insurance professionals can start developing a customized cyber insurance plan that best protects your business.
Meet Meet Sue Armstrong
Cyber Insurance Expert
Your business deserves an extra layer of protection. Please invest some quality time talking with me, and together we’ll find the best policy for your peace of mind. There’s no obligation for the review!