Aug 29, 2023Why Cyber Coverage Is Crucial
Why the Time for Cyber is Now
The Internet is becoming an even more dangerous landscape for businesses who handle very sensitive information. From large financial institutions to local banks, major tech companies to software startups, hackers are finding ways to make sharing and storing data a harder task.
Recently, more than 500 million customers of Marriott and Starwood hotels became victims of one of the largest data breaches in history, adding to the 34% of American consumers who have experienced a compromise of their personal information over the last year. And experts are already forecasting that 2019 is shaping up for more advanced cyber threats against consumers.
That’s why it’s more important than ever—and will continue to become more important—to effectively combat cyber threats with the help of cyber insurance. Here’s why:
Businesses Rely on Computers
While this may not seem like a huge revelation, the dependence that businesses have on computers, software and networks to get the job done every day is growing. Accessing the Internet on devices, be it smartphones, tablet or desktops on or off a network, puts a business at risk of a cyber attack. Nobody is immune to cyber risk and every company that utilizes technology and the web needs a solid cyber insurance program like from Tangram Insurance. Tangram Insurance specializes in insurance for businesses in a number of ways including cyber insurance that provides financial help following a costly cyber attack.
Personal Data Storage
Personal consumer information is a valuable commodity for hackers to come by. When a business collects data, such as email addresses, social security information, financial information, this makes companies of all sizes prime targets for data breaches. Small businesses, for instance, are the easier marks to hit as they typically don’t feel they have adequate resources to invest in cyber insurance and/or updated network protection.
The Use of Cloud Services
Cloud technology is an exciting piece of tech that is helping businesses streamline their data storage and file sharing, and is becoming more advanced. But sharing files through a cloud service opens up companies to cyber threats as data becomes publicly accessible. There may be a very small amount of these shareable files that are ultra-sensitive in information, but within that very sensitive information are things like finances and personal data. While the cloud is a great way to collaborate more efficiently, it does pose a newer risk.
Cyber Attacks Are Costly
Even though the total cost of a cyber attack can be ambiguous, it can still spell trouble for businesses. Typically, estimates range from between $200,000 and $700,000, which can be enough to cripple or completely shut down a small business. Larger companies may have enough to cover the cost, but the reputational damage may be even more costly as investors and consumers may pull out.
Outdated Cyber Insurance May Not Cover Loss
Cyber protection options like Tangram Insurance can help to alleviate the financial fallout from an attack. But the most important thing about new cyber insurance policies is that they are evolving with the times. If a company has cyber insurance already in place, they may need to regroup and see what changes need to be made to protect against the major threats that are posed today. Businesses of all sizes should invest in new insurance coverage or see what they can do to reevaluate the program they have currently.
About Tangram Insurance Services
Located across the Golden Gate Bridge, just outside of San Francisco, Tangram is a full-service Managing General Underwriter and Program Manager offering specialty programs. We focus on industry-relevant coverage, competitive pricing, and practical business and risk management solutions for your clients. Since we are not all things to all people, we make sure to create outstanding custom-built solutions that matter to those businesses, and the brokers who serve those industries. Contact us at (888) 744-9810.