Despite the increasing number of headline-making data breaches and cyber attacks, many organizations still haven’t made cybersecurity a priority – or even put some of the more basic cybersecurity measures in place. According to an IBM security study done in 2018, 77% of respondents didn’t have formal cyber security incident response plan (CSIRP) applied consistently across their organization.

Considering that any organization that uses a network to store or transfer sensitive information is at risk of being target by cyber attackers, why not take precautions to try to prevent or minimize an incident? Below are some of the top reasons why many organizations don’t have proper cybersecurity measures in place.

Cybersecurity is an Investment

Many organizations admittedly skip out on cybersecurity due to the initial investment. This is likely compounded by the fact that it’s difficult to see what you’re paying for, because if your cybersecurity measures are working, then nothing is happening. Skipping out on cybersecurity because of the cost can end up being the biggest expense of all. The global average cost of a data breach is up $3.86 million, quite a significant amount compared to the cost of cyber liability insurance and an IT professional.

Another common mistake many business leaders make is hiring an IT professional, but not budgeting enough money to equip them with the proper tools needed. This is partly because of the next reason:

Lack of Understanding When it Comes to Security

One of the top reasons that organizations give for not taking adequate cybersecurity measures is that they just don’t understand it. In a way, this is also the most reasonable excuse. Cybersecurity is a constantly-evolving landscape; it has to be to keep up with ever-changing cyber threats. Installing anti-virus software on the organization’s network is not nearly enough to keep a company safe from a data breach or other cyber attack.

Organizations need to understand that proper cybersecurity measures include more than just anti-virus software or firewalls. Documentation of cybersecurity policies, education of employees, multi-factor identification services, cyber liability insurance and anti-malware software are also important aspects of keeping an organization protected from cyber attacks. Furthermore, if the company uses any mobile or IoT devices, measures should be taken to secure those as well.

Partnering with an insurance carriers that not only understands cybersecurity, but is a leader in developing cyber coverage and addressing new and emerging risks is key for insurance agents who want to show their clients the importance of proper cybersecurity measures. Not only can agents give themselves a new area of expertise, but they can help protect more organizations from becoming victims of a cyber attack.

 

About Highland Risk Services

At Highland Risk, we use our expertise and experience to provide insurance information and programs to those who serve long-term care and senior living facilities. Since 2007, we’ve been offering insurance and risk management plans designed to help our agents give their clients the ability to achieve continued growth while simultaneously protecting against loss, containing costs and increasing profitability. With offices to serve you in Chicago, Illinois and Phoenix, Arizona, we do everything we can to make your experience with us as professional and transparent as possible. To learn more, contact us at (877) 890-9301.