Many businesses believe that hiring a tech expert or outsourcing to a tech company is enough to safeguard against cyber threats. While these professionals are instrumental in creating and maintaining security systems, it's important to understand their limitations—particularly when it comes to financial liability during a cyber incident.
If your business faces a cyber breach, your tech expert or service provider is not responsible for paying any ransom or covering the costs of the damages. Their role is to set up protections and monitor systems, but they aren't an insurance policy against loss. Unfortunately, even with the best security measures in place, breaches still happen. Sophisticated cybercriminals are constantly evolving their techniques, making it impossible to guarantee complete protection.
Consider this: 60% of small businesses that experience a cyber attack go out of business within six months due to the financial impact of the breach (Cybersecurity Ventures). Additionally, 43% of cyberattacks target small businesses, which means no one is too small to be a target (Verizon Data Breach Investigations Report).
Even on personal computers, threats are becoming increasingly prevalent. In 2023, at least 30% of all households experienced some type of malware attack on their devices (Norton Cyber Safety Insights Report). This indicates that vulnerabilities are everywhere, and both businesses and individuals need a multi-layered approach to cybersecurity.
This is where cyber insurance becomes vital. Cyber insurance provides financial protection when a breach occurs, covering expenses like ransom payments, data recovery, notification costs, and business interruption. Without it, your business could be left to shoulder substantial costs alone, despite investing in solid security measures.
Consider cyber insurance as the safety net that your tech team can't provide. It ensures that even if a cyber incident happens, you have the financial resources to respond effectively and recover. To learn more about cyber insurance, contact an Insuregy specialist today.
914-696-1000 – info@insuregy.com
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