Cyber criminals target businesses of all sizes and industries across the globe, leaving catastrophic aftereffects in the wake of their attacks. Businesses that fall victim to cybercrime are tasked with cleaning up the fallout and minimizing the consequences on business operations. Consider the impact cybercrime could have on your business, and protect yourself with the right cyber insurance.
- Toll on financial resources. From directly stealing money to utilizing ransomware, successful cyberattacks come with a hefty share of remediation expenses and even total losses. The global average cost of a data breach is at an all-time high, nearing $5 million per incident in 2024. If a breach of customer data occurs, civil suits may soon follow seeking damages. Costly attorney fees and settlement amounts can quickly drain an organization’s capital. Cyber-liability coverage helps with damages associated with HIPAA violations, state and federal privacy protection laws, customer notification expenses, consumer credit monitoring expenses, ransom, loss of funds, damage to hardware or software, and crisis management.
- Reputational damage. Beyond the initial monetary impact, the ripple effect of a data breach or other cyberattack impacts a business's reputation. When it comes to how clients view your business, there is no insurance that can restore public perception after a cyber incident. Loss of trust occurs after breaches and can take years to repair. The best way to protect your reputation is to preserve your organization's incident-free status. Investing in top-tier IT services and secure infrastructures lowers the risk of being vulnerable to incidents. Social engineering fraud relies on human error to gain access to sensitive and confidential business information. Ensure your workforce is well versed in security best practices.
- Lost productivity. Attacks that bring business operations to a halt or disrupt normal activities often result in lost revenue. Infected computer systems, malware or data erasure leads to operational downtime and in turn greater economic loss. The longer the effects of a cyber incident linger, the longer it takes to get your business back to full productivity.
Don't ignore vulnerabilities in your business protection plan. Connect with one of our risk advisors today to learn more about the coverages you should consider.
