Cyberattack insurance: why today’s businesses need it

Author: Jack Churchill Posted on: 09.10.2015

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OTC Insurance Brokers Inc. is a provider of cyberattack insurance in Dartmouth, Nova Scotia. This week’s post looks at why today’s businesses need it.

Cyberattacks are getting more and more news these days and they can cripple a company, both small and large.

A new report by Kaspersky Lab, an international security software security company, crunched the numbers and looked at what the average bill is for a cyberattack on companies, both large and small. For an enterprise, the cost was pegged at $551,000 USD, but for small businesses it was $38,000 USD.

The $38,000 USD figure was composed of downtime ($23,000 USD), professional services ($10,000) and lost business opportunities ($5,000).

But the costs don’t end there, the report notes. On top of that, businesses “need to address staffing, training and IT infrastructure upgrades to prevent future incidents from occurring,” says an article on canadianunderwriter.ca.

How can you protect your business?

If your business does business online and collects sensitive data protected by privacy acts, besides top-notch security and staff protocol, you’ll need added protection by way of cyberattack insurance.

What does cyberattack insurance cover?

 

Cyberattack insurance has three elements. There is a legal liability component that protects your company against lawsuits that result from a data breach.

There’s also a business interruption component and that compensates you for things like lost revenue as a result of the downtime from the breach.

The third component is breach notification costs. Depending on the size of your company, this cost can be significant.

For businesses today, cyberattack insurance is a must. Not only are there monetary costs when a breach occurs, a business’ reputation takes a huge hit as well.

OTC Insurance carries cyberattack insurance and we’d be happy to tell you the ins and outs of how it works and what would be an appropriate level of coverage for your business.

Apply for cyberattack insurance

 

If you want to begin the process, fill out this questionnaire on our website. It asks questions about things like the type of data collected and stored, how it is handled and the security measures in place.

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