In today’s tech-driven world, the cost of NOT having cyber insurance is much greater than the actual cost of cyber insurance.
Let me put it this way…
You are more likely to experience a data breach this year, than you are to catch the flu.
In other words, you have a 27% chance of experiencing a cyber attack.
And without a cyber insurance policy, it can have a dramatic impact on your bottom line.
The Cost of a Cyber Attack or Data Breach
In 2017, 61% of small to midsize businesses experienced a cyber attack, and 54% experienced a data breach that involved customer and employee information. (Ponemon Institute, 2017 State of Cyber Security in SMB)
And the cost of a cyber security incident could be detrimental to your bottom line.
There’s 4 cost factors that contribute to the total cost of a data breach or cyber attack:
- The cost to detect and report the breach
- The cost to notify individuals whose data has been compromised by the breach
- The cost to help individuals or customers affected by the breach to communicate with the company
- The cost of lost business including customer churn, business interruption and system downtime.
Depending on your business size and industry, along with the type of data and records you store in-house, the cost of a cyber attack or data breach could range anywhere from $35,000 to $2 million.
That is, unless you have a cyber insurance policy.
Cyber Liability Insurance Cost
The cost of a cyber liability insurance policy is primarily determined by four factors:
- Industry Type. Industries that collect personally identifiable information or personal health information face greater risk than those that do not.
- Type and Number of Records Stored. The more data records a company has, the greater the risk and the more dramatic the impact a cyber attack can have on their bottom line. Each lost or stolen record is costing, on average, $148.
- Annual revenue. Companies with higher revenue tend to face greater risk.
- Coverage limits. There is no one-size-fits-all cyber insurance policy. Each policy is tailored to your company’s specific needs. We can help you determine the limits you need to protect your company from potential financial loss of a cyber attack.
Annual cyber insurance premiums can range anywhere from $1,000 for a small business to $,8,500 or more for midsize companies.
For example, a CPA firm with $100,000 in annual revenue and a cyber insurance coverage limit of $1 million may pay an estimate of $1,200 per year for their cyber insurance policy.
How to Secure a Cyber Insurance Policy for your Business
Let’s work together on securing a cyber insurance policy for your business.
Here at The O’Neill Group we act as your outsourced risk managers. We identify and analyze the risks your company faces, and help you develop strategies and solutions to reduce those risks.
We also work with a number of insurance carriers, and can design for you a cyber insurance policy that meets the specific needs of your business, while still keeping your insurance budget in tact.
My name is Pat O’Neill and I’m a Certified Risk Advisor here at The O’Neill Group, a risk management and insurance firm in Northeast Ohio. I’d love to learn more about your business, and help protect you against the threat of cyber risk.
Call me at (330) 334-1561 or email me at firstname.lastname@example.org.
Interested in getting a cyber insurance quote started now? Fill out this simple, 4-question form and we’ll get to work on this right away!
This article was adapted from Zywave. This is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.