Cybersecurity: Your Hedge Against Rising Insurance Rates
Accelerated by the pandemic, the rate of cybercrime continues to rise across all industry verticals, and the cost to companies of all types and sizes is escalating along with it.
Not surprisingly, more businesses are purchasing cyber liability insurance policies to cover typical costs related to cybercrime such as customer notification expenses, regulatory penalties and legal fees, disaster recovery and reputation management services.
How much could your company pay for cyber insurance? Premiums differ according to these factors:
A robust cybersecurity program is essential to containing risk and navigating through a world that is more virtually connected than ever. We can help you shore up your cybersecurity defenses and ensure you’re taking the right steps to secure your unique business and operating environment. Give us a call today to schedule a cybersecurity readiness assessment.
- Industry: Statistics show certain industries, such as healthcare and local government, have higher cybersecurity risk and thus higher insurance rates.
- Coverage amount and type: Policies vary with the value of assets at risk, such as revenues, and areas of focus, such as ransomware.
- Organization size: Larger companies often require comprehensive coverage.
- Unfortunately, as risk increases, so does the price of insurance. For their part, insurance companies are responding accordingly to this negative trend—by reducing limits, increasing prices and decreasing coverage.
- Coping with rising costs: A renewed focus on robust cybersecurity is the best way to cope with rising costs and risks. Reducing cyber risk may help you mitigate your liability and potentially reduce your cyber insurance costs. Moreover, in high-risk industries such as healthcare, finance and information technology, advanced cybersecurity measures are fast becoming a requirement for insurability.
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