October ordinarily brings the return of crisp air, fall foliage, and Halloween. This year, for the first time, it also brings National Cyber Security Awareness Month. Yet designating a month to increase cybersecurity awareness seems redundant. We are reminded almost daily of the importance of cybersecurity, as media reports of cyber breaches have become commonplace. Of course, the most widely reported cyber incidents have been data privacy breaches that have affected tens of millions of consumers nationwide. These are the sorts of incidents that have spawned a growing market for so-called “cyber policies” (although as we wrote recently, the CEO of one of the largest insurers has acknowledged that cyber insurance capacity remains relatively small).
There has been no recent shortage of high-profile cyberattacks and data breaches leaving businesses with millions of dollars in losses. Verizon’s 2015 Data Breach Investigations Report counted 79,790 security incidents (including 2,122 confirmed data breaches) in the last year alone. If you’re a business that stores information electronically—that is, if you’re any business at all—you’re probably sufficiently worried about cyber threats just by reading the news. But if you haven’t fully appreciated the seriousness of the problem yet, the insurance industry is happy to help. As one insurer warns in its marketing materials, “many companies don’t realize that whether they experience a data security breach isn’t as much a matter of if it will happen as when.” Sufficiently terrified of cyber threats? Don’t worry—these same insurers will let you know they offer coverage that will help mitigate your risk. As one insurer puts it, “when a security breach happens, you’ll need comprehensive protection from an insurer that specializes in handling cyber risks, offers a full suite of integrated insurance solutions to help minimize gaps in coverage, and understands how to tailor coverage to your business.” READ MORE