Why You Should Consider Cyber Insurance for Your Company
Is your business ready to face a successful ransomware attack and come out alive on the other end? Most small to midsize businesses are not. In fact, 45% of SMBS report that their cyber security is ineffective. They could easily be overtaken by ransomware.
In the past year, 66% of SMBS have fallen prey to at least one cyber attack, with ransomware being the most common method of attack. Just one successful ransomware attack can mean the loss of copious amounts of money in ransom, extortion, and recovery efforts. It can mean the loss of privacy as personal information may be publicized. It can mean the loss of productivity as systems shut down, and it could mean the loss of reputation as the majority of customers stop doing business with a company that has experienced a data breach. All of this combined means the loss of the entire business within 6 months of attack for 60% of companies who fall victim to ransomware.
Since the beginning of the COVID pandemic in 2020, ransomware attacks have risen by 50%. That means that, every 10 seconds, a person, device, or business is hit by a ransomware attack. The rise in these attacks comes largely from the 70% of the American workforce that began working from home last year. With the sudden surge in use of personal devices and personal networks, rather than company devices and networks, cyber security has taken a huge hit. As IT departments are left blind to the dangers and threats against personal devices and networks, cyber criminals have had a field day with the flimsy security suddenly facing most companies.
The cost of these attacks is also taking a sharp upturn. Just a few years ago, in 2019, damages due to cyber attacks amounted to 4 billion dollars, but by 2028, it’s expected to reach 28 billion dollars. In 2015, damages due to ransomware cost 24 million dollars, but just 5 years later, in 2020, that amount was at 170 billion.
Most SMBS are not prepared to survive these attacks. Security measures don’t meet the demand. “Strong” passwords, password authentication apps, and two factor authentication methods can all be easily hacked, leaving SMBS vulnerable to attack and failure.
Cyber insurance is one way that SMBS can help protect themselves. It doesn’t keep the attack from happening, but it’s a cushion that could help these businesses pull through to live another day.
