Categories: Infographics

Why Businesses are Turning to Cyber Insurance for Protection

Storing data electronically is convenient for businesses across industries.  While the storage abilities of the Internet benefit many, the drawback is that online data is always at some level of risk for cybercrime.  As internet access expands worldwide, so too does the volume of business taking place online.  Sharing data across multiple apps and clouds, among other acts, increases the opportunity cyber criminals have to exploit company weaknesses.


Cyber crime is one of the most lucrative criminal ventures. In 2016, ransomware caused $209 million in damages.  By 2020, that figure exploded to $170 billion.  Even large corporations are not safe from hackers.  The recent attack on Colonial Pipeline represents the largest attack ever on a US energy system.  When JBS paid $11 million in ransom to their cyberattackers, it was the largest reported ransom payment on record.


Related Post

While these major incidents make the headlines, the real tragedy is when cybercrime targets small to midsize businesses (SMBs).  In the last year alone, 2 in 3 SMBs were victimized by at least one cyber attack.  3 in 5 of the victimized SMBs went out of business within 6 months after a data breach or hack.  The damage these fallen companies suffered went beyond a ransom payment.  Businesses also lost money from recovery efforts, halted operations, and their sullied reputation as a result of the cyber attack.

Cyber insurance can’t prevent an attack, but it can curb the fallout from one.  SMBs’ cyber insurance policies usually cover up to $1 million in damages.  Coverage includes loss of profit, liabilities than arise from the cyber attack, and lawsuits filed as a result of the cyber attack.  Gaps in coverage include loss of damaged devices and intellectual property the company loses in a data leak.  Many see the investment as worth it despite these imperfections.


Brian Wallace

Brian Wallace is the Founder and President of NowSourcing, an industry leading infographic design agency based in Louisville, KY and Cincinnati, OH which works with companies that range from startups to Fortune 500s. Brian also runs #LinkedInLocal events nationwide, hosts the Next Action Podcast, and has been named a Google Small Business Advisor for 2016-present.

Published by
Brian Wallace

Recent Posts

Combining Crypto With Stock Trading: DTX Exchange Hits $1M Milestone Surpassing ETFSwaps & XRP Price Momentum

The existing exchanges have been unable to solve many traditional problems for traders and investors.…

9 hours ago

Solana Ecosystem Thrives With Major Growth In Wallet Interactions And NFT Dominance

The Solana ecosystem has witnessed a remarkable surge in activity over the past 24 hours,…

11 hours ago

A Closer Look At The WazirX India Hack: $235M Stolen In Real-Time

The recent WazirX India hack has now ranked among the top 10 biggest crypto hacks…

11 hours ago

Smart DEX Traders Identify Four Crypto ‘Gems’ With High Accumulation Potential

Data from Crypto AI has highlighted four tokens considered "Gems by Smart DEX Traders" as…

11 hours ago

HashAI Surges 180% Amid Smart Wallet Activity And Upcoming LBank Listing

HashAI has seen a significant rise of 180% since July 15. Despite an 8% decline…

11 hours ago

CHR Faces Sharp Pullback Amid Exploiter And Whale Activity

CHR has experienced a sharp pullback, hitting a support level around $0.23. Recent on-chain reports…

11 hours ago