As the world becomes increasingly digital, you’re probably finding yourself embracing a variety of new technologies within your business. Technological advancements are essential for your long-term success. However, they also introduce the heightened risk of cyberattacks, data breaches, and other security concerns.
Some alarming statistics regarding cyber security include the following:
- 78% Lack Confidence in Their Company’s Cybersecurity Posture
- On average, only 5% of companies’ folders are properly protected
- The average cost of a data breach in the United States has hit an all-time high of $8.64 million
- Cybercrime To Cost The World $10.5 Trillion Annually By 2025
As of 2021, the top types of attack include:
Ransomware – hackers lock the information/computer of the victim, and ask the victim to pay a ransom. It can spread from visiting infected sites and opening phishing emails.
Malware – malicious form of software designed to harm computers. It can invade computers through internet downloads, external hard drives/USB, and physical hard drives.
Social engineering – the attacks depend on social interaction with employees who unknowingly become manipulated to reveal confidential data.
Phishing – belongs to social engineering attacks. In phishing, hackers use false identities to trick individuals to download malware, divulge classified information, or visit malware-laden sites.
With that being said, The good news is that investing in cybersecurity can safeguard your data and reassure you that you’re protecting your business. Here are four reasons to invest in cybersecurity insurance for your business.
1) Peace of Mind for Clients and Investors
You probably already know how cybersecurity can affect your peace of mind within the business. Still, your clients and investors are also likely to feel more comfortable knowing that their data is adequately protected. This makes for improved business relationships and will increase the odds of attracting new clients and investors to your company. After all, no one likes to feel like their private information is at stake when considering a new business deal. The more protection you have in place, the more likely your key relationships will be preserved.
2) Protect Against the High Cost of a Breach
To put it simply, a data breach is expensive. According to the Ponemon Institute’s 2020 “Cost of Data Breach Study,” the average cost of a data breach in the United States has hit an all-time high of $8.64 million.
For starters, you might lose business (and, therefore, revenue) in the short and long term because customers lose faith in your company. You may also have to halt all normal business operations to comply with investigative measures or manage customer inquiries. Plus, you can be sued for failing to keep data protected. Many companies assume the expense associated with cybersecurity measures is prohibitive, but rest assured that it’s nothing compared to the costs you’ll incur in the aftermath of a cyber attack.
Companies are also choosing to enhance their protections against cybersecurity threats because one breach can have a tremendous impact on productivity. A cyberattack can be costly because it disrupts the daily workflow of employees. It takes up their time and prevents them from performing important tasks that benefit both customers and product development.
3) Higher Risks for Remote Workers
In recent years, there has been a significant increase in cyberattacks on work-from-home employees, especially following the shift to remote work in 2020. The majority of these attacks come from their personal connection being less secure than those found at the office and higher access to company networks as well. Added risks come from companies using online tools for productivity like Slack or Zoom that don’t have much security set by default. Fortunately, there are steps employers can take to protect their employees working remotely.
These are the areas organizations should focus on to shore up remote-work cybersecurity:
- Setting up and communicating remote-work security policies.
- Securing virtual private networks (VPNs).
- Regulating personal-device use.
- Addressing authorization and authentication.
- Communicating with employees about phishing and malware campaigns tailored to the current crisis.
- Securing communication and collaboration channels.
- Providing vigilant IT support.
4) Cybercrime Rates Are Increasing
Lastly, ignoring cybersecurity is especially dangerous, given that rates of cybercrime are increasing. It’s not a matter of if your company will fall victim, but when your company will fall victim. There are so many avenues for hackers to find weak points in today’s digital landscape that you’re likely vulnerable in one way or another unless you double down on cybersecurity.
As you can see, cybersecurity insurance is vital for businesses in every industry. If your company has any digital footprint, these risks are relevant and should be taken seriously. So, if you’re behind on your cybersecurity practices, use this information to improve your setup now—before it’s too late.
Merritt Business Solutions provides a way for businesses to identify vulnerabilities in their website and internet-facing networks where cybercriminals often attack. In addition to being notified of cyber risks, if you don’t have a dedicated IT team to fix the issues, we’ll provide your business with a specialist who will help resolve the vulnerabilities remotely, included in the cost of your membership. In the event your business is hacked, related expenses up to $100k with a Cyber Protection Plan will help get your business back on track quickly. Learn more about how MBS can help by contacting us here.