The digital age has never been more alive than it is now. Workplace technology is constantly on the rise, and whether it’s for online banking, digital marketing, e-commerce, emails, or cloud-based data storage, almost all businesses are dependent on at least one type of technology to conduct their key operations. That’s why having a cyber insurance policy makes sense.
However, with the increasing use of technology, the risk of business data security breaches also increases – which can be detrimental to an organisation. Not only is there a significant amount of inconvenience when a data security breach takes place, but reputational and financial damage can also occur too. However, by taking out a cyber insurance policy, you can mitigate the risks of this type of breach significantly harming your business.
Here are the top five consequences of a data security breach or a cyber attack:
1 – Increased Costs and Loss Of Revenue
Increased costs and loss of revenue as a result of a cyber attack is sadly very common for businesses. Whilst last year alone businesses paid out on average around £3,230 to deal with security breaches, this doesn’t take into account the impact on their ability to trade. Loss of revenue can occur easily with a cyber attack. Not only can it turn potential clients and customers away from your services, but if your own IT system is hacked, downtime can lead to major productivity and work disruptions.
2 – Jeopardising Brand Reputation
Security breaches can also impact your long-term reputation as a brand too. Cyber-attacks can risk the leaking of emails, private documents, and personal information about your customers too (including payment information). As a result of this, potential leads, future employees, and investors, could end up extremely hesitant to trust your business with a history of poor data security.
3 – Loss Of Business Property/Work
Alongside reputational damage and loss of revenue, there are some cyber hackers who will actually target businesses who have important intellectual property which has a high value. Work such as designs, blueprints, and strategies can be targeted – this is especially the case for manufacturing and construction industries. Losing this type of property could cause your business to lose its USPs – not to mention the fact that rivals could try and take advantage of the stolen property too.
4 – Further Resolution Costs
Without a cyber insurance policy, you could encounter further hidden costs related to your security breach when it comes to moving forward as a business. From legal fees and investigations to PR crisis management strategies, your business could find itself needing to pay out even more when it comes to putting the situation right again.
5 – Online Vandalism
Although most hackers have more serious intentions for breaching your security, there are some people who hack systems for entertainment purposes. In cases like this, a security breach might not lead to a major leak of information, but subtle changes to your website can be made. Often this is in the form of pages being restructured, contact numbers being tampered with, or inappropriate content being added to the pages. Although this may seem relatively harmless, subtle changes can be harder to notice and can deter visitors from using your website.
Cyber and Data Breach Protection For Businesses
Here at Insurance2day, we are proud to work with some of the country’s most reputable cyber insurers. One of our insurers, Beazley, partners with a number of providers, including KnowBe4, the world’s largest provider of security awareness training and a simulate phishing platform provider. Together, they are offering cyber insurance policyholders exclusive access to cybercrime webinars and a range of other risk management resources.
Contact Us Today for a FREE Cyber Insurance Policy Quote
If you have found this blog helpful then you may wish to read our previous blog on Docusign Phishing Attacks.
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