These days, cyberattacks are a constant threat to businesses of all sizes. As attacks become more sophisticated, the potential costs of dealing with a breach continue to rise.
This is why cyber insurance has become a necessity for many companies. However, the cost of comprehensive cyber cover often gives businesses pause for thought.
The truth is, cyber insurance doesn't have to be prohibitively expensive. Here are three factors that impact cyber premium costs and show why cyber coverage can represent great value:
Cyber risk is now the top business threat
Cybercrime has been named the number 1 business risk for the past 5 years. The frequency and impact of cyberattacks continue to grow exponentially. No business is immune, and the likelihood of a breach is higher than ever. Like fire or theft insurance, cyber coverage is essential to mitigate a top risk.
Breaches carry huge costs
The average cost of a cyber breach is in the 6 figures. Expenses like legal fees, IT forensics, business interruption and reputational damage quickly add up. Cyber insurance provides vital financial protection and expert assistance to manage an incident. Without it, the costs to resolve a major breach could easily cripple a company.
Advanced policies provide proactive services
Comprehensive cyber insurance policies now include loss prevention and risk management services to help avoid attacks in the first place. This can include managed firewalls, employee training, vulnerability scans, threat monitoring and an expert incident response team. These services would cost tens of thousands per year if purchased separately. Bundled with a policy, they provide incredible value.
The bottom line is that while cyber insurance is absolutely necessary, it does not have to break the bank. The right policy provides extensive financial protection and services to avoid and mitigate devastating cyber incidents. When you consider the potential alternative, quality cyber coverage is one of the wisest investments a business can make.