Data breaches have increased by more than 400% in the last decade, according to Statista. The FBI’s Internet Crime Complaint Center (IC3) reported that 2024 saw a 33% increase in losses related to cybercrime, and the cost of data breaches for business owners is skyrocketing. Last year, the average data breach cost $4.9 million, according to IBM—a 10% increase from the prior year.
As technology advances, bad actors are becoming more and more powerful, and business owners are liable for the ever-growing costs that follow. This is why cyber insurance exists; it acts as a safety net to protect your business from liabilities related to data breaches that expose personally identifying information provided by your customers.
A few of the expenses cyber insurance typically covers are:
- Legal fees
- Liabilities for any losses
- Costs associated with notifying customers of the breach
- Data recovery expenses
- The repair of any systems damaged during the attack
- Extortion costs related to a ransomware attack
If you’re wondering if cyber insurance is right for you, it’s important to consider the level of risk associated with your business. Are you handling a lot of sensitive customer information? How robust are your systems? How susceptible to phishing are your employees?
At Mufson Band Insurance Brokerage, our expert advisors will examine your risks and help you decide whether cyber insurance is right for you. The best part? We offer free insurance evaluations, so there is absolutely no obligation no matter what you choose. To start analyzing your risks and protecting the business you worked hard to build, contact our trusted team today.
