Cybersecurity has become increasingly important, especially with many businesses working remotely. A cyber attack can be devastating to a business, incurring monetary and productivity losses. The right insurance coverage can help mitigate those losses and keep your business safe. Learn how a ransomware attack impacted one Aegis client, and how their cyber insurance helped them avoid a disaster.
A Ransomware Story
In 2019, an Aegis Insurance Markets client was hit with a large Ransomware attack. It shut down their business for multiple days resulting in a loss of over $50,000 in production and income.
Luckily, our client was insured against this type of attack.
The client immediately contacted their cyber insurance company and was able to open a claim to help remove the ransomware and deal with the requested ransom.
In just a few days, they were back up and running. Had the client not been insured, the cost to deal with the Ransomware could have reached $150,000 or more. Because they were insured, however, the client only paid the small deductible.
How Cyber Liability Insurance Works
Cybersecurity or information technology security is used to protect computers, networks, programs, and data from unauthorized access or attacks that are aimed at exploitation.
Today, even small businesses need to have some form of cybersecurity in place. However, cyberattacks are becoming increasingly common, raising the risk that a hacker could get around your defenses. With hacking and phishing incidents becoming more frequent, the risk management team at Aegis Insurance Markets is working hard to help protect companies from an inevitable breach.
A Clark School study at the University of Maryland found that hackers are constantly attempting to break into computers with internet access, at a rate of an attack every 39 seconds on average. This impacts one in three Americans every year. Furthermore, a whopping 43% of cyberattacks target small businesses.
This frequency with which cybersecurity threats arise makes cyber liability insurance a must-have for businesses. This unique coverage is designed to help your business recover in the event of a data breach or cyber attack.
Depending on your plan, your cyber liability insurance can include things like:
- Electronic data restoration
- Business interruption coverage
- Liability lawsuits
- Credit monitoring services
If a cybersecurity reach takes your business offline, the fiscal impact could be devastating. Make sure you have the coverage you need to prevent a major loss with the Aegis Insurance Markets team. Get a cyber liability insurance quote.