The Costs of Doing Online Business
Companies often consider the need for things like insurance in the event of fire, flood, or theft. With the increase in online threats, however, perhaps it’s time for more companies to also consider cyber insurance. To that measure, Sue Marquette Poremba, writing for eSecurity Planet, offers some advice and recommendations as to the potential benefits of cyber insurance and what to look for in a cyber insurance provider.
Intended to provide protection in the event of a harmful cyber incident — such as a data breach, business interruption, or cybercrime — this insurance can offer an organization with relief should such an incident occur. Significant growth in this insurance is expected in the coming years, based on three key drivers:
- increasing awareness of cyber risk and the associated costs;
- increasing global regulation; and
- increasing frequency and magnitudes of cyber attacks on organizations.
With the average data breach costing companies $4 million, or a single compromised record costing an average of $158, costs associated with cyber incidents can easily bankrupt smaller organizations and significantly impact larger ones.
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