Did you know that 60% of small businesses fail within 6 months after they have been a victim of cyber-attack? At the same time, 55% of businesses that bring in less than $10 million in annual revenue report that they have been targets of at one data breach. With such shocking statistics, it is a necessity to have a Cyber Risk insurance in place. Data is a business’s most valuable asset but unfortunately it is also the most target one by cyber-attacks, yet standard insurance policies do not cover these risks. AON has a solution for you, but let us first understand why a business requires it. Here are the 5 main reasons why your business needs a Cyber Risk Insurance
- Cyber-attacks have the ability to cripple a business just like other physical occurrences; however, standard business interruption insurance does not cover it.
- Cybercrime is the fastest growing crime globally; it has the potential of being launched from any corner of the world specifically targeting your business as well as others with the same attributes. Yet again, standard property or crime insurance policies do not cover it.
- Customers trust your business with their personal identification information; other third parties do the same as well. If this information is lost or leaked, your business is held liable and big penalties are enforced.
- Your company’s reputation is your number one asset, it should be a priority to defend it and insure it. Being a victim of a Cyber-attack can do a lot of damage to the company’s image especially if there is no corrective measure put in place.
- It is a big misconception that cyber criminals only target large corporations. The truth is that businesses of all sizes and across all industries are at risk.
AON, a global professional services firm that provides risk solutions among other products, recently launched Cyber Enterprise Solutions, it enables businesses to remain protected against cyber criminals, data loss and the potential damages that may come from a cyber-incident . The solution is classified under property/casualty and Internet of Things insurance policy. The Cyber Enterprise Solutions provides;
- Cover for property damaged due to a network security breach
- Products liability to address Internet of Things exposures
- Business interruption and extra expense coverage caused by systems failure
- Contingent network business interruption for IT vendors and the supply chain
- Cyber terrorism coverage
- Privacy/security liability and the coverage of expense brought by such an event
- Media liability and technology errors and omissions by endorsement.