The Importance of Cyber Liability Insurance in 2021
Since 2018, cyber attacks have grown by 150%. Cyber claims are totaled to reach $10.5 trillion by 2025, according to Cybersecurity Ventures. The rise in cyber attacks has led to an increase in cyber liability insurance prices, and experts say that the market could continue to double in the next three to five years. So, if there was ever a time to purchase cyber liability insurance, it was now.
Let’s take a deeper look at the importance of cyber liability insurance in 2021:
As we have seen in the past few months, cyber-attacks have taken businesses by storm and have more prominently been showcased throughout the news.
In May, we saw an attack on Colonial Pipeline – creating gas supply shortages for a large portion of the southeast.
Most recently, in June, we saw JBS S.A., the largest meat processing company in the world, shutting down American beef operations for two whole days.
What is ransomware?
Ransomware is a type of malware that locks your computer or device until a sum of money is paid to unlock it. Similar to malware, ransomware occurs after downloading infected software, clicking links, or opening an email attachment. Along with encrypting your computers, cyber-criminals are downloading your vital information and holding it hostage until they are paid.
Cyber attackers have become extremely advanced in their execution of ransomware and exploitation has become easier. As businesses become more reliant on digital frameworks, it increases their overall likelihood of paying a ransom, giving hackers even more of an incentive to attack.
How can you protect your business?
Cyber liability insurance is more important than ever. Whether you are a small business or a large corporation, you have data that needs to be protected.
Cyber liability insurance helps your business respond in the event of a cyberattack or data breach. To know how much cyber protection you need, you must assess your business’s risk potential. Every business is different. Here are some helpful tips to consider when purchasing cyber insurance.
In addition to cyber liability insurance, here are a few practical tips your business can follow:
• Invest in employee security training
• Use strong passwords
• Turn on two-factor authentication
• Update software regularly
• Use an antivirus software and firewall
• Backup data frequently