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you need cybercrime insurance

Think You Don’t Need Cybercrime Insurance?

The Data Tells Another Story!

It seems everyone wants to acknowledge that cybercrime is a real problem, yet so few do anything about it. Over 60% of cybercrime targets small to medium sized businesses, a leading tech firm found that most small businesses spend less than $500 on cybersecurity. Let’s take a look at the numbers.

The average cost of a small business cyber-attack is over $200,000.00
  • 60% of small businesses that experience a cyber-attack go out of business within 12 months.
  • The average cost of a cyber-attack is over $200,000
  • 90% of all cybercrime begins with a phishing email; we open 30% of those emails and then click on the infected links or attachment 1 out of 10 times
  • 68% of funds lost to cybercrime are unrecoverable
  • If your business experiences a cyber-attack, you could be subject to lawsuits, civil penalties and the additional monetary consequences of notifications to affected parties, credit card monitoring, loss of income, reputational harm, data restoration…

While no business can be completely protected from a cyber-attack, a three-pronged approach can provide considerable protection:

  1. Train your staff on cybercrime and how it happens. Establish strong security procedures and protocols in your office and insist they be followed
  2. Have a network security expert on call for assistance, and do a bi-annual or annual network security sweep to check for invasions, viruses, etc. Data suggests that the bad guys are in a network for an average of over 100 days before they act.
  3. Consider cyber-insurance! Few businesses can afford that $200,000 cost as noted above. Simply put, a cyber-insurance plan can save your business!
Cybercrime damages exceeded $3 trillion in 2015 and will reach $6 trillion dollars by 2021 - over half of cybercrime is related to human error. 99% of phishing hacks are the result of human error.

At the Landy Agency, we offer a number of insurance options that can help make sure your business is protected from the various threats of cybercrime. Let us help-we are here for you!


John Torvi

Author: John Torvi

John Torvi is the Vice President of Marketing & Sales at the Herbert H. Landy Insurance Agency of Needham, MA. John has been in the insurance industry, focusing on the needs of business owners, for over 27 years. He holds a Bachelors Degree from Providence College and a Masters Degree from Springfield College and is a frequent speaker and contributor to professional journals and conferences for the legal, accounting, real estate and insurance industries.

The Landy Agency is a national leader in providing non-medical, professional liability and cybercrime insurance for accountants, attorneys, and real estate professionals. John can be reached at 781‐292‐5417 or johnt@landy.com. Visit www.landy.com for more information.

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