Inside counsel states that thirty-one percent of data security incidents during 2015 were the result of phishing, hacking or malware, according to the second annual BakerHostetler Data Security Incident Response Report. That’s a staggering and sobering figure for any business owner to comprehend. As cyber-attacks are becoming more prominent and virtually every business is at risk, it’s imperative to carry the right Indianapolis Cyber Liability insurance.
The report also found that on average, it took about 69 days for the breach to be detected. Approximately 190,000 individuals were affected as a result of each attack. However, “Being ‘compromise ready’ better positions companies to respond to data security incidents faster, contain the threat and potentially lessen the severity of these events,” said BakerHostetler’s Theodore Kobus.
This means having the best insurance, adequate network security, and proper cloud storage protection. Bear in mind, however, that simply outsourcing data to cloud-based companies does not mitigate all risk. In fact, the liability may still fall onto the business owner in the event of a breach.
While the threat of breaches is inevitable, businesses also need to develop a strategy to identify, contain, and respond to breaches. While only about 24 cases out of the above mentioned study required public notification, the damages of having to do so can devastate a business. From public relations teams to notifying clients to reputational damage, the fines can be overwhelming.
At Walker & Associates Insurance, we understand the risks involved with cyber-attacks. Our policies seek to combine professional underwriting and quality service to safeguard businesses like yours. To learn more about our policies, contact us today at (888) 920-2139.