A cyber attack which shuts down parts of the United States’ power grid could cost as much as $1 trillion to the U.S. economy, according to a report published on Wednesday.
Company executives are worried about security breaches, but recent surveys suggest they are not convinced about the value or effectiveness of cyber insurance.
Focus is on the consequences, not the problem:
Companies are finding a way to minimize the repercussions when their digital security is violated. Unfortunately, they’re turning to the same safeguards that protect the guitar-strumming hands of Keith Richards, the goal-scoring limbs of David Beckham and the most remarkable assets of Dolly Parton, rather than coming clean about the perils of data breaches or pooling information so that threats can be properly quantified and addressed.
In short, they’re focusing on the consequences of cyber crime, not the causes….
Target, Sony, Premera: It seems almost every week we hear the news of yet another large company that’s been hit with a data security breach and the inevitable flood of lawsuits that follows.
If you’re a small business owner, incidents like these might make you wonder: What would you do if something like this happened in your company? How could you protect yourself? Do you need cyber-liability insurance?
Will 2015 be the year that Cyber Insurance gains velocity and popularity?