Cyber insurance rates are going up as attacks become more frequent and costly. The biggest culprit? Ransomware attacks, which are becoming a plague for small and medium-sized businesses.
Ransomware attacks were the number one cause of loss for small and medium firms last year, according to a report out this week from NetDiligence. “The attacker’s shift in preference to small and mid-sized organizations has become overwhelming,” the authors note.
The typical cyber attack is costing $36,000 per incident, but the amounts can range widely, so that the average loss is actually around $175,000. And that’s just from the attack–servicing the problem and paying legal and regulatory costs adds on another $100,000 on average! All in, these attacks cost $275,000 to small and midsized companies last year, up from just $103,000 in 2016.
And they’re occurring across all industries, from professional and financial services (where the average loss is over $200,000) to manufacturing, retail, and healthcare. Little wonder that policyholders can now expect cyber insurance premiums to go up 20% to 50% this year, according to Aon.
That may be tough to swallow, but with the frequency and severity of cyber–and especially ransomware–attacks on small and midsized companies these days, it’s still better than going without coverage. To learn more about cyber coverage, click here.