Why the Need – and Cost – for Cybersecurity Insurance is on the Rise
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In the nearly 30 years since Gillman Insurance first opened our doors, the needs of business owners have evolved quite a bit. While our Problem Solvers provide all the traditional business essentials – like General Liability, Commercial Property, Worker’s Compensation, Group Health and Commercial Auto Insurance, the proliferation of the internet and its place in the commercial marketplace has given birth to a segment that didn’t even exist in our portfolio in 1993… Technology Insurance. While Technology Insurance is a great match for companies in the technology industry, issues like data privacy and cyber security extend to EVERY INDUSTRY under the sun that has a presence on the internet. Not so different from making sure your brick-and-mortar storefront is adequately insured, more and more companies are learning the need for and value of Cybersecurity Insurance, in particular. Luckily, Gillman Insurance Problem Solvers offer Cybersecurity Insurance among our broad portfolio of personal and business insurance products.
Does Your Company Need Cybersecurity Insurance?
According to the Department of Homeland Security’s Cybersecurity & Infrastructure Security Agency (CISA), cybersecurity is “the art of protecting networks, devices, and data from unauthorized access or criminal use and the practice of ensuring confidentiality, integrity, and availability of information.” Having poor cybersecurity puts your company at risk of a security breach, including having malware hijack your entire system or having a hacker access your system, alter your files and steal proprietary information – like your customer’s credit card numbers, social security numbers and other personal data. Having poor cybersecurity insurance puts your company at risk of being sued in the event that any of the above takes place. The CISA is constantly updating its Known Exploited Vulnerabilities Catalog to keep tabs on vulnerabilities that are a “frequent attack vector for malicious cyber actors and pose significant risk.” That catalog is open to the public, and while it’s important to stay informed about potential risks, it’s equally important to be insured in the event they impact your company and the clients you serve.
Cybercriminals can penetrate 93% of company networks
Businesses suffered 50% more cyberattack attempts per week in 2021 – Education/Research entities experienced the most attacks, followed by Government/Military and Communications
Ransomware cost the world $20 billion in 2021 – which is expected to reach $265 billion by 2031
43% of all data breaches involve small and medium-sized businesses
83% of small and medium-sized businesses are not financially prepared to recover from a cyber attack
Long story short… the answer is YES. If you have a presence on the internet or store your clients/patients’ private information in the cloud, you need Cybersecurity Insurance.
Is Cybersecurity Insurance Affordable?
As with every insurance product we provide, Gillman Insurance Problem Solvers will do our part to find the best and most affordable solutions to fit your needs. As is traditionally the case when capacities are low, but demand is high, cybersecurity insurance rates are on the rise. The escalation in and severity of cyber claims is a major driver behind climbing rates. The Council of Insurance Agents & Brokers’ (CIAB) Commercial Property/Casualty Market Index reports that cybersecurity premium price increases averaged 27.5% during 1Q2022. The Index also indicates that insurance carriers are now requiring enhanced security measures like multifactor authentication, stronger passwords, third-party management, employee training, system backups, response plans and more in order for companies to obtain cybersecurity insurance. While that may seem overwhelming, a growing number of carriers are actually providing access to those tools, as well as system assessments and software to achieve those heightened requirements.
A consultation with a Gillman Insurance Problem Solver to determine whether Cybersecurity Insurance is the right fit for you, is FREE. To learn more about our Cybersecurity Insurance capabilities and access our Cyber/Data Breach Calculator, please visit our Technology Insurance page at www.GillmanIns.com. Ready to take a proactive approach to your company’s cybersecurity needs?