As technology drives almost every business that exists today, cyber security has become a number one concern. In the past year, the U.S. has experienced an alarming number of technology cyber attacks on infrastructure, financial platforms, healthcare systems and critical energy-related networks. Experts agree that these risks are the most immediate and vulnerable ones that organizations face today. Their repercussions impact communities, government and society as a whole.
Interestingly, however, when executives analyze the threat of cyber attacks on companies, they often fail to realize the correlation to the quality of insurance coverage in which they have invested. eMaxx, an insurance leader in transportation, energy, recycling, utilities and towing, understands the enormous impact. It has dedicated its team to providing the best tech-enabled risk management policies and use state-of-the-art 21st century tools to safeguard business from the inside and the outside.
Cyber breaches are becoming an increasingly significant risk to all commercial industries, and owners should not think their business is immune to this threat. Businesses of all sizes witnessed a 50% increase in these threats between 2020 and 2021. Recent reports estimate that in 2021, 43% of cyber attacks targeted small businesses. An astronomical claim can severely handicap a company’s ability to purchase insurance. Moreover, regulatory fines can result in bankruptcy for even the most secure organization, big or small.
For companies that are still not convinced of the importance of this coverage, McKinsey recently reported that almost half of executive-level managers said their company had endured a cyber attack. And 25% of these managers rated the damage as high or severe. Energy is among the most targeted risks in the U.S. The 2021 penetration of the Colonial Pipeline in Georgia, which affected the entire country, is a startling example of this problem and exposed the risk to corporate America in a very tangible way. Their problem is not unique; 90% of the power infrastructure in the U.S. is privately held and must create their own coverage.
However, by planning for risk, taking control of their destiny and working side by side with a team of technology, risk management and captive insurance policy experts, companies can mitigate potential loss in this vulnerable business sector.
Cyber is no different than any other insurance exposure. It should be at the top of the list to protect your business. Don’t skimp on this imperative coverage. Contact our Wholesale Division to get a cyber security quote. The professionals at eMaxx can customize your industry-specific plan, assess your company’ vulnerability and recommend the tools to protect your workers, your business and your community.