Cyber Liability Insurance: A New Normal for Business Risk Protection
The global cost of data breaches will rise from about $600 billion in 2016 to more than $2.5 trillion in 2020.
Even in years when severe weather disasters wreak havoc, the price tag on the damage these natural disasters cause doesn’t equal the losses a data breach can incur.
So why is insuring against natural disasters fully understood as a cost of doing business, but cyber insurance is still something “only big companies” need?
While we read more about major network breaches that target large companies like Home Depot, Neiman Marcus, JP Morgan, Target, Blue Cross and others, the fact is that cyber criminals are now attacking more small to mid-sized businesses because, many times, they don’t have the IT staff necessary to monitor network security.
Mid-sized businesses also continue to underestimate cyber threats because many of their senior executives do not fully understand these emerging threats, according to the Center for Insurance Policy and Research. These executives also have little actuarial data regarding cyber risk insurance and shy away from purchasing coverage as a result.
Cyber insurance is also a relatively new business product with a variety of immature policies. Companies need a specialized expert to help with cyber insurance coverage because there is no standard insurance policy for cyber liability and data breach insurance.
Sword & Shield and our partner, Affenix, offer a two-step solution to help companies navigate the cyber insurance field. We can help you mitigate risk through our comprehensive suite of security services while also transferring that risk by offering the most comprehensive cyber liability and data breach insurance on the market.
Submit a request for a consultation to get started today.