As Technology Evolves, So Do Cyber Criminals
Cyber attacks have become extremely common, and as technology evolves, so do cybercriminals. Companies are scrambling to keep up with the ever-changing tactics used in cyberattacks.
Due to the threat of data breaches and ransomware attacks, businesses are shelling out more money for cyber insurance coverage to combat increasingly systematic and sophisticated strategies used by hackers.
5 Reasons for Rising Cyber Insurance Costs
Let’s take a look at five reasons for rising cyber insurance costs.
Higher Demand
Higher demand for cyber protection has increased the cost of premiums. In the early 2000s, only a handful of companies used cyber insurance. Now, however, most businesses around the world use computers in their daily operations, making cyber insurance critical.
Costly Losses
The cost of losses associated with cyberattacks has increased tremendously, and the potential of expensive claims has forced insurers to raise premiums.
Lacking Cybersecurity
As cyberattacks become increasingly common, it has become clear that many businesses are lacking proper cybersecurity measures. Companies not educating workers on best cybersecurity practices or employees not implementing recommended strategies leads to greater risk. With significant risk comes higher insurance costs.
Ransomware Attacks
Ransomware attacks typically require large payouts and loss of productivity. These attacks can shut down entire facilities for weeks, eating into the projected profits and exposing potentially sensitive information. To accommodate large payouts and lengthy downtime, insurance providers are charging more.
Remote Work
Remote work has unveiled never-before-seen challenges in cybersecurity. It’s nearly impossible for companies to monitor cyber hygiene or ensure that business information is kept safe with employees working from home. The risks associated with remote work has pushed insurance costs higher.
Get the Right Cyber Insurance
You want to ensure you get the right cyber insurance coverage without overpaying. Contact Steve Longenecker (303-808-9351, x2) at Mountain Insurance: Longmont to discuss your business insurance coverage options in Longmont, CO, and our neighboring communities.
We give out $25 gift cards for referrals that become our insurance clients.
Like, Share & Follow us on LinkedIn and Facebook.
#longmontinsurance #insurancebroker #mountaininsurance