Why Cyber Insurance Is a Crucial Aspect of Modern Business

Cybersecurity has become an essential component of modern business operations. Many hackers and cyber intruders use the latest technology to affect network security. They compromise the cyber structure, jeopardize network safety, and steal sensitive information. According to the Ponemon Institute survey, 80% of the participating companies have experienced at least one ransomware attack in the past year. Cyber insurance is one of the significant aids that can help organizations reimburse the damage and secure their network connections. In her article for RM Magazine, Hillary Tuttle shares why firms should introduce cyber insurance.

Raising Cyber Threats: An Overview

According to the Ponemon Institute Survey, 53% of the participants mentioned that the company paid the ransom, where the average payment was $1 million. One of the main reasons for companies to pay the amount was the shortage of downtime. 45% of the companies had to shut down for a period, whereas 40% lost a considerable amount of business. There is an urgent need to safeguard the information of clients and business officials. In doing so, the organizations spend a significant amount of money and resources to gather information.

How Cyber Insurance Can Help

Ransomware is one of the most frequently inflicted cyberattacks that firms face. It puts immediate pressure on the impacted enterprise, leading to the re-prioritization of business tasks. To deal with ransomware attacks, many companies have begun using cyber insurance. It helps organizations cover their ransomware risks. Various firms that provide cyber insurance make sure that the companies’ interests are prioritized. However, 64% of the respondents in the Ponemon Institute survey do not have insurance. 36% have cyber insurance, but it does not cover ransomware attacks. However, 40% of the participants have mentioned that the insurers have modified their services. They now have included ransomware insurance to safeguard the interest of companies.

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