Aftermath of a Cyber Security Breach

Could it be more damaging than a natural disaster?

According to a survey by Experian Data Breach Resolution and the Ponemon Institute, only 31 percent of companies are insured Cyber risk insuranceagainst data breaches.  Meanwhile, 76 percent of respondents rated the impact of a security breach to be greater than or equal to a natural disaster, business interruption or fire.

The average cost for data breach was estimated by respondents to be $163 million, although some projections neared $500 million in damages. For a 24 month period, the 56 percent of respondents having suffered a cyber-security attack reported the average cost of the breach to be $9.4 million.

The case for cyber risk

With so much on the line – time, money, and reputation – it is a wonder that only one-third of companies polled are currently insured for data breach. While cost and excessive policy exclusions were listed as the primary roadblocks for consumers looking to purchase coverage, those with a policy were nearly all happy with the response of their providers to the claim. In fact, 62 percent of respondents found that as a result of the Cyber Risk underwriting process, their company is now more prepared to deal with a breach.

The tipping point

“We are reaching a tipping point where the majority of companies we surveyed now rank cyber-security risks as high as other major insurable business risks. We anticipate that demand for cyber-security insurance is likely to increase in response to evolving breach response policies.” – Michael Bruemmer, vice president of Experian Data Breach Resolution

A cyber-security breach can happen to a business of any size. Don’t allow a data breach to derail your business. Invest in Cyber Security Insurance and help protect your company from the devastating financial consequences of a breach.

Source – Cyber-Security Insurance Adoption Grows

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Categories: Breach Of Security, Cyber Liability

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