Although the primary method of information loss or theft continues to be from insiders, cyber-attacks certainly cannot be ignored. It's now a top concern for all business executives. In fact, according to a survey conducted by Penn Schoen Berland, executives are more concerned with the threat of cyber-attacks than property damage or even investment risks.
The study polled 258 risk managers, senior executives and insurance brokers across the US and Canada.
Overall, 85% of participants said they were very or somewhat concerned with cyber risks. That compares with 80% who said they were concerned with property damage and 76% about securities and investment risks.
Companies are more aware of the potential damages they'd face if they lost control of customer information. They also seem to be growing more receptive to getting help from insurers and trust their ability to help protect against this threat.
Data breaches can be extremely costly - for both the information loss and reputation recovery.
- The global cost of cyber-attacks in 2011 was $388 billion dollars.
- 174 million records were compromised by cyber-attacks in 2011
Insurance providers have also adapted to provide service against these claims. Carriers are offering data breach counseling and in some cases forensic assistance, credit monitoring and notification services.
Safety and security of information is critical - if a breach occurs, it could cause a loss of reputation, the trust of your clients and most importantly, their business. Speak to a qualified insurance agent today to review your current coverage and ensure your business is protected.
Sources: 2012 Symantec/Norton Cybercrime Index; Verizon's 2012 Data Breach Investigations Report