Lovitt & Touché: Why businesses shouldn’t neglect their cyber hygiene
Risk of cyberattacks is nothing new but, since the onset of the COVID-19 pandemic, cybercrime is on the rise — both in prevalence and magnitude — underscoring the importance for companies to maintain proper cyber hygiene to protect their data, operations and bottom lines.
Even as we return to some semblance of pre-pandemic normal in the coming months, the risk of cyberattacks is expected to keep growing. Costs of cyberattacks are projected to reach $6 trillion in 2021 alone, according to Cybersecurity Ventures, and expected to balloon to $10.5 trillion by 2025.
Considering these alarming trends, cyber risk insurance has never been more essential to protect businesses, their sensitive data and critical operations.
However, due to the rising incidence of cyberattacks and correlating claims, coverage has become pricier for companies to secure. Rates for cybersecurity insurance coverage climbed 30% by the end of 2020, with premiums potentially rising another 50% through 2021, according to Marsh.
But businesses aren’t simply having to pay more for cyber coverage. Because of the greater risk posed by more prevalent attacks, particularly ransomware, carriers have begun to tighten coverage limits, even restricting or placing sub-limits in ransomware coverage. Some carriers also have implemented co-insurance on coverage to share the cost of any ransomware payments.
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About Lovitt & Touché
With more than a century in business under its belt, Lovitt & Touché is a staple of the Arizona insurance industry. One of the largest insurance agencies in the US, the company boasts more than 200 employees and more than $400 million in written premium. Headquartered in Arizona, Lovitt & Touché is a part of the Marsh & McLennan Agency serving Arizona and the Western region. A subsidiary of Marsh LLC, a leading global insurance broker and risk management advisor, we offer world-class business insurance and risk management solutions, personal insurance, bonds and surety, and employee benefits. Visit www.lovitt-touche.com for more info.