Getting hacked isn’t just a hassle. It also poses a potentially huge and unexpected cost to your business.
Cyber incidents were named by 39% of survey respondents from more than 2,700 risk management experts in over 100 countries and territories; shares the annual survey from Allianz Global Corporate & Specialty (AGCS). Seven years ago, the survey report revealed, cyber incidents ranked only 15th with just 6% of responses.
“Awareness of the cyber threat has grown rapidly in recent years, driven by companies’ increasing reliance on data and IT systems and a number of high-profile incidents,” AGCS explained in the survey report.
Cyber liability insurance is a specialized policy that’s customized to cover many of the risks your business faces from an information breach–and even covers some risks you might not have thought of.
A cyber liability insurance policy can help you to cover the expenses associated with a cyber hack. Additionally, some commercial cyber liability policies cover loss of business while your systems are compromised or unavailable. You can even get coverage against inadvertently breaching somebody else’s copyright.
Though you may not be able to prevent or even predict security breaches, there’s no excuse for being unprepared. Don’t put your clients, your business, and your reputation at risk.
Here is a list of the other risks identified by survey respondents:
- Cyber incidents (e.g., cybercrime, IT failure/outage, data breaches, fines and penalties)
- Business interruption (including supply chain disruption)
- Changes in legislation and regulation (e.g., trade wars and tariffs, economic sanctions, protectionism, Brexit, Euro-zone disintegration)
- Natural catastrophes (e.g., storm, flood, earthquake)
- Market developments (e.g., volatility, intensified competition/new entrants, M&A, market stagnation, market fluctuation)
- Fire, explosion
- Climate change (increasing volatility of weather)
- Loss of reputation or brand value
- New technologies (e.g., the impact of artificial intelligence, autonomous vehicles, 3D printing, Internet of Things, nanotechnology, blockchain)
- Macroeconomic developments (e.g., monetary policies, austerity programs, commodity price increase, deflation, inflation).
For more information, the full AGCS Risk Barometer 2020 can be downloaded from the Allianz website.
Source: Allianz Global Corporate & Specialty (AGCS)
Want to obtain a cyber liability insurance policy for your business? Reach out. We’re ready to help!