Report Shows Companies are Still Under-Insured for Cyber Risk
Would you believe that about 80% of U.S. businesses are likely to suffer a data breach within 12 months? This is according to a report published by Insurance Business America. While most of the associated costs typically come to less than $1 million, there’s a 5% change the breach will cost the company $20 million or more. This could easily be a financially devastating incident to any of your clients, which is why it’s important to be protected with the right Privacy and Network Security Insurance Coverage.
Surprisingly, even with these statistics, many companies are still ignorant to their need for this protection. In fact, the Ponemon Institute surveyed 2,243 respondents in 37 countries across five global reagions, and found that fewer than 1 in 5 respondents said their businesses have any type of cyber-insurance coverage. What are they choosing to insure?
A recent Wall Street Journal article reports that companies insure property, plant and equipment more than their information assets, even though they know their information is incredibly valuable. Experts believe that one large reason companies could be avoiding cyber coverage is that they don’t believe they’ll get adequate coverage or that the premiums will be too high. The truth is, however, that most companies cannot afford to go without this coverage.
At PLRisk Advisors, our Privacy and Network Security Coverage is the solution to helping your clients manage and protect against risk. Please contact us today for more information at (855) 403-5982.