In today’s tech-oriented world, cybersecurity threats have contributed to the failure of many businesses worldwide. According to a Hiscox Insurance Company survey, a single cyberattack on an organization costs $200,000, while the affected organizations go out of business within six months after the attack. These threats keep enterprises on high alert since cybercriminals are constantly devising more sophisticated cyberattacks.
Some ways cybercriminals target companies of all sizes include malware, phishing, ransomware, DDoS attack, and data breaches. Luckily, you can protect your business from these cyberattacks and avoid suffering significant losses by buying cyber liability insurance. This article will delve deeper into cyber threats your business faces and the importance of cyber insurance in mitigating these threats.
Cybersecurity Threats for Businesses
As cyberattacks continue to become more sophisticated, it would be ideal if you assessed your business’s vulnerabilities. Here are the most prevalent cyber threats your business may face in the future.
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Malware
Malware is a cybersecurity threat that cybercriminals use to hack your business’s devices to slow them down or stop them from working entirely. They hack your devices by sending harmful agents such as spyware, viruses, adware, ransomware, worms, and Trojan malware to destroy your organization’s computer system. The malicious software is released into your computer when you click an infected link, download a file from unknown sources, or click an infected pop-up ad.
Once hackers have released malware to your business’s computers, they gain unlimited access to your passwords, banking data, personnel files, and credit card numbers. Over the past year, organizations reported that 35% of the malicious software attacks they encountered used previously unseen malware. Thus, building your IT security expertise internally and externally is crucial in protecting your business from malware cyberattacks.
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Phishing
Cybercriminals use phishing as a hacking scheme to trick your company’s network users into downloading harmful malware or messages. This hacking scheme uses legitimate-looking logos, attachments, and business names and appears more or less like a regular email. The dangerous email, in turn, calls the users in your network to action by persuading them to download an attachment and click on a linkbait.
Once the user clicks the link or downloads the attachment, cybercriminals gain unlimited access to your business’s information, which they use to cause harm. According to the 2021 Cisco Cybersecurity Threat Trends study, 86% of companies worldwide reported having their users connect to a phishing website. Thus, it would be ideal if you educated the users in your network to flash out suspicious links to avoid exposing your business to substantial risks.
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Data Breaches
Data breaches occur when confidential user data is stolen from your company’s system without your authorization and used for the hackers’ gain. This sensitive data include but is not limited to social security numbers, home addresses, email addresses, credit card numbers, passwords, and user names. Cybercriminals mainly implement data breaches through your business’s network or point-of-sale system attacks.
According to Identity Theft Resource Center’s data breach analysis, data breaches in the United States climbed by 38% in 2021, and the number is expected to grow in 2022 and 2023. If a data breach occurs in your business, you must take immediate action to resolve the issue and mitigate the breach. Failing to contain the data breach may completely tarnish your business’s reputation, and you may be fined millions of dollars in litigation.
Importance of Cyber Liability Insurance
When cyberattacks strike your business, they can cause devastating damage such as business disruption, litigation fines, and loss of revenue. Since no company is immune to these cybersecurity threats, enrolling in cyber insurance is ideal for risk management. Cyber insurance is tailored to meet your business’s needs and offer essential monetary benefits, which include:
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Data Breach Coverage
In case of a data breach, the law requires you to notify all affected parties, adding to the data breach costs such as identity theft protection, security fixes, and legal fees. Cyber insurance covers you from these exposures, which, in turn, safeguards your company’s data from cybercriminals.
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Business Interruption Reimbursement
Cyberattacks can lead to the failure of your business’s IT infrastructure, thus disrupting your daily business operations. Cyber liability insurance covers you from the loss of income during the interruptions and covers increased business operation costs after the attack.
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Cyber Extortion Defense
Cybercriminals who use ransomware steal and withhold your company’s key data until you pay a steep fee. Covering your business with cyber liability insurance helps you recoup all the losses pertaining to cyber extortion.
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Forensic Support
In the wake of a cyberattack, you will need to investigate the extent of the cybersecurity breach and determine what caused it. Good cyber liability insurance covers all forensic costs, seeks expert advice, and provides 24/7 cyber specialist support.
Final Word
In hindsight, cyber breaches aren’t going away soon since cybercriminals are increasingly getting better in their craft. Thus, it would be ideal if you were aptly prepared in the likely event hackers strike your business. If you want to audit and implement cybersecurity best practices to lower your cyber security insurance premiums, here at 360 Visibility, we are ready to help.