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Embroker Team August 25, 2022 2 min read

Massive Hack a Reminder of the Need for Cyber Insurance

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Cybersecurity truly is the new wild west. Many businesses don’t realize all the risks involved and how they’re constantly changing. We hear about large attacks like the Equifax breach, but more than 80% of businesses have been hacked and many don’t even know.

Hackers can wreak heavy damage or even hold your data hostage by asking for a Bitcoin ransom payment. Anyone who accepts credit card payments, has bank information, employee benefits, and other types of customer information are vulnerable. Even if you’re using a third-party vendor to store data, you as the owner are still responsible for your customer’s data.

The good news is that many high quality carriers are now available, which is driving down premiums, which makes it a great time to buy cyber insurance. But you need to utilize a broker with strong cyber knowledge, so you’re actually getting what you think you’re paying for.

Like the Equifax case, you need to consider covering lawsuits, credit monitoring, PR coverage, and more to provide the best protection depending on your industry. And smaller businesses are just as vulnerable if not more, because 60% of small businesses go out of business within 6 months of a cyber attack.

Need more information about how to protect your business from cyberattacks? Check out our cyber insurance guide.

Beazley lead insurer on what could be the world’s biggest hack by Sonali Basak and Jenny Surane

Equifax Inc.’s insurance against cyber breaches is likely inadequate to cover the credit-reporting company’s costs tied to one of the biggest hacks in history, according to people familiar with the coverage. Learn more about the Equifax Inc. hack.

Now that you have a better understanding of Cyber risks, you may be wondering how all of this affects your business and where to go from here. If you need more help or information, you can reach out to our team of expert brokers. Or, if you prefer to get started on intelligent quotes, create your Embroker account today.

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