Does it surprise anyone that cyber security is such a hot topic in our digital world?
The Internet of Things (IoT) describes the network of physical objects embedded with sensors, software, and other technologies that connect and exchange data over the internet. According to Statista, there are approximately 15.14 billion connected IoT devices in 2023—almost twice the total world population.
In today’s digital age, nearly every business operates with some form of internet connection. Customer demand for convenience through technology continues to escalate cyber exposures, creating increasing risks for businesses striving to maintain or grow their market share. Cyber threats evolve rapidly, compounded by advances in artificial intelligence (AI). Finding a trusted IT security partner to keep pace with these risks should be a priority for every business.
How Have Large Corporations Responded to the Growing Cyber Risk?
Modern corporate executives rank cyber security among their top business threats. Given the ever-growing reliance on internet-based systems, cyber security is no longer just an IT issue but a priority for the entire C-Suite.
Do Small to Medium-Sized Businesses Take Cyber Risk as Seriously?
Studies show that despite significant cyber exposures, up to 85% of small business owners mistakenly believe their companies are safe from cyber-attacks. In reality, nearly half of cyber-attacks target organizations with fewer than 250 employees. Many small businesses:
- Lack formal internet security policies for employees.
- Fail to back up data in multiple locations.
- Do not engage third-party testing of their systems.
- Decline opportunities to transfer cyber risk through cyber insurance.
Why Relying Solely on an IT Security Provider Isn’t Enough
While IT security providers are critical to protecting against cyber threats, relying solely on them leaves businesses vulnerable. Many incorrectly assume their IT provider assumes liability for breaches. Even the best IT providers cannot guarantee protection from cyber breaches or human error, which remains the leading cause of data breaches:
- 68% of breaches are caused by employee or contractor mistakes (e.g., clicking malicious links, weak passwords).
- 29% of small businesses have experienced at least one data breach.
What Are Businesses Legally Responsible for in a Data Breach?
Laws across all 50 states and U.S. territories require businesses to notify consumers if their personal information is breached. Regulatory fines and penalties can result if these notifications are not timely.
What Does a Cyber-Attack Typically Cost?
The Ponemon Institute estimates the average annual cost of cyber-attacks for small and medium-sized businesses exceeds $2 million. For many small businesses, this is unsustainable—nearly 60% of businesses close permanently within six months of a cyber-attack. Delays in addressing cyber vulnerabilities often result from concerns over cost, yet the consequences of inaction are far more severe.
Is Cyber Insurance Only for the Medical and Financial Sectors?
While businesses in the medical and financial sectors face high risks, cyber insurance is essential for any company that:
- Accepts digital payments.
- Stores confidential customer information.
- Uses computers, tablets, or smartphones.
How Can Cyber Insurance Protect My Business?
Most commercial general liability (CGL) policies do not cover cyber events. Cyber insurance fills this gap, with coverage expanding to meet growing exposures. Policies can include:
- Data breach response and recovery.
- Notification and regulatory compliance costs.
- Loss of income due to a cyber event.
- Third-party liability claims.
The insurance specialists at Swarts, Manning & Associates can help your business prepare for all types of risks, including cyber threats. We’ll work with you to review coverage options and tailor a plan to suit your needs. Call us today to get started: (702) 878-2820.
Click here to submit a Quote Request.
If we have had the pleasure of working with you, we would love for you to leave a review on Google. Your honest thoughts help us improve and grow and allow potential customers to better understand what we have to offer. Thank you in advance for your time and support!