Don't Put Your NFP at (Cyber) Risk
The insurance ratings agency, ‘A.M. Best,’ estimates the maximum destruction caused by a nuclear loss is around $8 billion. That same ratings agency has pegged the maximum impact of a cyber loss at reach $31 billion, almost quadruple a nuclear loss.
A few years ago, this seemed unfathomable, but cyber losses have since skyrocketed. According to a report, security attacks rose by 48 percent in 2014 when compared to 2013. And 2015 was even worse, with more than 117,000 attacks on average per day. As the number of internet-connected devices grows – research firm International Data Corporation – or IDC – believes that number will increase from 13 billion in 2015 to 30 billion in 2020 – the possibilities for hackers will increase substantially.
The attacks aren’t only more wide-reaching, but are also becoming more destructive. The number of cyber losses exceeding $20 million has increased exponentially in recent years, as infiltrators have more and more data to steal and sell. For companies exposed to this type of malicious activity, the damage to their public image can be irreversible. And it’s not only retail and ecommerce companies. Not for profit organizations need protection, too. Think of all of the sensitive data you have – volunteer info, health records, maybe even credit information from donations. All at risk of being hacked.
The silver lining in all of this is that the publicity of the attacks on large companies, such as Target, has opened everyone’s eyes to the importance of cyber security. Most companies have set up risk-based cyber security frameworks such as ISO 27001 and the US National Institute of Standards and Technology (NIST) Cybersecurity Framework, which help assess and prioritize potential security risks.
But in addition to frameworks, the use of advanced authentication is recommended. This has replaced the simple username and password with more secure operations such as one-time passwords and two-factor authentication tokens. As technology improves, further advancements in hack-proof authentication should hopefully curb the number of cyber security losses.
However, hackers will still look for any way into a vulnerable system. To help mitigate the cost of security for these threats, cyber insurance is available for your organization. It’s important to note this coverage isn’t covered in your GL policy. What’s better than having peace of mind knowing your information is protected and from the dangers impacting the interconnected cyber space?
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