Cybersecurity issues have become a significant risk. Businesses of all sizes could face a cyber event – a phishing attempt, ransomware attack, or malware incident. And cyber insurance trends predict the risks will continue into 2022.
Schools, hospitals, city governments, private businesses, even the oil pipeline faced shutdowns in 2021 due to cybersecurity attacks. CNA Financial was even the victim of an expensive cyberattack, paying a $40 million dollar ransom in 2021.
Read on to learn more about top cyber insurance trends and ways businesses can mitigate their risks.
Cyber Insurance Trends to Watch in 2022
2021 was a record year for data breaches. The average ransomware payment increased by 82% in 2021 and the US Treasury Department has identified approximately $5.2 billion dollars in possible ransomware payments, according to Forbes.
Let’s examine the top cyber insurance trends more closely.
Ransomware is a top threat.
Ransomware attacks are likely to continue — and become even more sophisticated. Some experts are predicting frequencies may rise but severities could eventually flatten. Ransomware demands have increased in 2021. Businesses can help mitigate their risks with sound risk management, although completely eliminating the threat of a ransomware attack may be impossible.
Employees working remotely can create cyber vulnerabilities.
The trend to work remotely is predicted to continue in 2022. One thing we learned during the pandemic is lots of people can work from anywhere. And many people are choosing to do that — living a laptop lifestyle. But remote work can increase system weaknesses. Connecting your laptop to your favorite coffee shop’s Wi-Fi is convenient — and potentially risky. Try some of our Wi-Fi travel safety tips to help protect yourself when working remotely.
Data breaches will continue.
All companies are at risk of a data breach. It doesn’t matter how big or small your company is. If you have private customer information, you are at risk of a breach. And if one happens to you, it can be expensive to notify customers, manage public relations, and stop the loss of more data at the same time.
Supply chain issues could become more prevalent.
Supply chains are increasingly more complex — and the more links in the chain, the more risks are introduced. There is also more pressure on companies to ensure their supply chains are free from exploitation and other risks. If any supplier along your chain has vulnerable systems, it exposes your records and systems to hackers, as well.
Businesses are only as strong as the weakest part of their supply chain when it comes to hackers. And if your data is exposed, your customers won’t care if it was because of your supplier or your systems directly. You are responsible for all parts of your supply chain. Your customers will look to you for any breach of their data.
Risk Management to Mitigate Cyber Threats
The good news is you can help protect yourself and your business with sound risk management.
Cyber and Privacy Insurance is coverage designed to help protect your business from these losses. Both property and liability coverage are generally included. Sometimes you can elect to add cyber coverage to your E&O policy — check with your agent.
Follow good cybersecurity practices.
Change passwords often, keep your anti-virus program current, and train your employees on common phishing and malware incidents. Follow good maintenance and safety procedures to reduce the likelihood of a cyberattack.
Invest in employee training.
If a cyberattack happened, would you know what to do? Would your staff? Time is critical during a ransomware attack. Training your staff before an event happens means they will know what to do in case of a cyberattack at your business. Try immersive training simulations or roleplay training to engage and teach your employees how to respond to all kinds of events. These programs build muscle memory, so everyone knows what to do immediately.
Enjoy Discounts on Cybersecurity Packages with the American Agents Alliance
Our E&O insurance product includes cyber coverage, and we offer discounts on cybersecurity packages for our members! Join the American Agents Alliance today for these helpful benefits and more!