According to the 2021 Data Breach Investigations Report from Verizon, 61 percent of all small and medium-sized businesses (SMBs) have reported at least one cyber attack during the previous year. Regardless of this, many businesses still do not have any coverage against cyber attacks.
Executive SummaryAccording to data from Fundera, cyber attacks target 43 percent of small businesses, an increase from 18 percent just a few years ago, but some companies are still hesitant about getting cyber insurance because they are afraid of putting a target on their back. Steve Prymas, chief insurance officer at Embroker, breaks down the myth that owning cyber insurance increases the risk of facing a cyber attack.
Businesses are concerned that having cyber insurance policies in place increases the chances that cyber criminals will identify them as a potential target for future attacks, when in fact, cyber insurance can save a company from going under.
Even if you don’t have cyber insurance and you are subject to a ransomware attack, cyber criminals likely can find out what assets you do have—bank account information, real estate holdings, investments, etc.
Given this information, the attackers will determine your No. 1 financial vulnerability and how much you can feasibly pay and use that to maximize the payment. In other words, they will get you one way or another. So, how can businesses best protect themselves given this inevitability?