Data breaches are becoming more common
As data breaches become more common, cyber insurance is attracting more attention. Recent high-profile attacks against companies like Home Depot and JPMorgan Chase have highlighted the damage that a data breach can cause. Companies that do business online often store a wealth of information provided by their customers. This information can be anything from names and addresses to bank and other financial data. While cyber insurance cannot guarantee that a company is safe from an attack, it can help mitigate the damage caused by a breach.
Hackers are becoming more focused on their targets
According to Dell SecureWorks, a security service provider based in the United States, those behind cyber attacks are becoming more focused and are beginning to use more sophisticated methods to gain access to private information. As hackers become more capable, they are beginning to sidestep many of the modern security measures that businesses put in place to protect themselves and their customers. In the past, companies simply had to be more secure than their counterparts, and this served as an effective way to avoid hackers. This is no longer the case, however.
Companies of all sizes are being targeted by malicious groups
Large companies, like JPMorgan Chase, are often seen as targets due to their size and scope. These companies typically have robust security solutions in place, but that does not guarantee that they are protected against hackers. Malicious groups do not only target large organizations, of course, and smaller businesses have been becoming targets more frequently in recent years. Because there is no way to ensure absolute protection against an attack, insurance coverage may be a necessary safety net for businesses.
Cyber insurance may soon be a necessity for all businesses
According to a recent study from the Ponemon Institute, a single data breach targeting a medium-sized company could cause as much as $5.4 million in damage. Cyber insurance can reduce the financial burden of such an attack and provide a business with the financial support it needs to recover. Typically, a cyber insurance policy can provide coverage for a range of services, including the hiring of a security firm to implement better solutions and a PR firm to help repair a company’s reputation.