More than half of all US businesses have been hacked in the last year, and Cyber Risk Insurance provides one important form of protection from cyber attacks. According to a new survey (see here & here) released by The Hartford Steam Boiler Inspection and Insurance Company (HSB), part of Munich Re, 53% have experienced a cyber attack in the past year.
The costs of addressing the cyber attacks were significant for businesses. While businesses spent more than $5,000 on 72% of the attacks, 17% cost more than $100,000.
Data loss is a significant concern, but attacks such as ransomware and cyber crime may be more significant, and can be more damaging (see our prior posts here, here & here). The survey results demonstrate that other types of attacks that can severely damage a business are extensive. Ransomware was a factor in 29% of the attacks and social engineering in13%. In addition, carriers have confirmed to us that ransomware, cyber crime and other destructive first party losses are running at 75% or more of claims for small and medium sized businesses.
The survey participants included companies of all sizes, including companies with revenues of less than $5.0 million. Cyber Risk Insurance (also called Data Breach, Privacy and Network Security insurance coverage) is an important form of protection, with 56% of the participants purchasing Cyber Risk Insurance for the first time within the past year.
Comprehensive Cyber Risk Insurance is an essential coverage for businesses of all sizes for protection from both criminal attacks and employee error. While data loss is a significant exposure, ransomware and cyber crime, including social engineering fraud, can cause significant direct loss to small and medium sized business. Coverages vary widely, and so a thorough review by our Cyber Risk experts is essential to ensure that comprehensive coverage is in place.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability and specialty insurance (E&O, D&O, EPL, Cyber Risk, Specialty). Cyber Risk Insurance is our specialty, and we excel at hard to place accounts.
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