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Cyber Risks and Liabilities

By January 3, 2018August 22nd, 2018

Data Breaches Increase at a Record Pace

Cyber risks and liabilities are at an all time high. According CNBC, 14 million businesses were reported hacked during the last 12 months in the United States alone, marking a 29% jump from the same period in 2016.

Most Vulnerable Sectors

The report organized the data breaches into five sectors: business, banking, health care, government, and education. At 54.7%, the business sector experienced the highest percentage of total breaches reported. Coming in second was the health care industry at 30.7%.

The Real Numbers

The 791 breaches reported included at least 12 million records, however the actual amount of records expose could be much higher, since most industries aren’t required to share the type of information stolen and number of records compromised.  In fact, 67% of all the breaches omitted such details, marking another record high.

The Cost of a Breach

Not only is the number of data breaches at a record high, but so is the average cost of a breach—up 5% from last year at $7.35 million. What’s more, is that since data breaches are so common, only a small portion make the news, so many businesses fail to realize the threats they’re exposed to until they find themselves victimized.

Cyber Insurance Volume Up 35%

According to Finch Ratings, the  direct written volume for cyber insurance in the property and casualty industry increased to $1.35 billion, up 35%.  The agency credits this increase to frequent reports of computer hacks and high-profile ransomware attacks.

Don’t be a statistic.  Learn more about protecting your business with a cyber security plan.  Call The Flanders Group at 800-462-6435 for assistance.  We’re your Property/Casualty/Commercial Auto/Workers Compensation/Benefits solution providers.