While many companies fear ransomware demands, damaged servers or legal costs after a breach, business interruption and incident response costs are typically far more volatile and severe.
Not realizing this, many Small Businesses may feel they have the resources to recover from a cyber incident. Yet the cost of downtime from ransomware is 23 times greater than the actual average ransom – and 50.6% of those who pay don’t even recover their data, leading to higher costs.
Further, since 2009, 57.4% of total cyber claims are driven by costs for forensic firms to investigate and remediate the breach, public relations firms to repair reputations, call centers to manage regulatory notification requirements and credit monitoring for affected customers.
Cyber insurance can reimburse companies for ransoms, but more importantly, it covers the business interruption and incident response costs that are more likely to put you out of business.