The growing risk of cybercrime and how cyber insurance can help

The costs of a data breach are almost as frightening as the threat itself. According to Forbes, In 2021, the average number of cyberattacks and data breaches increased by 15.1% from the previous year. The global cost of cybercrime in 2021 exceeded $6 trillion.

Cyber insurance helps companies prevent breaches through risk management. It can also be essential in helping your company recover after a data breach. Costs, including business disruption, revenue loss, equipment damages, legal fees, public relations expenses, forensic analysis and expenses associated with legally mandated notifications, can all be covered by cyber insurance. Read on to find out more about the growing risk of cybercrime and how cyber insurance can help.

Here are a few ways that cyber insurance can protect your business.

Loss of data:

Cyber intrusions are costly. Building more cybersecurity barriers isn’t enough anymore. Along with cybersecurity, it’s essential to have a backup plan for a breach. A cyber insurance policy can cover the costs of data loss and restoration required to get operations back on course.


Most cyber coverage policies will cover the following costs in the event of a breach:
● Costs associated with forensic investigations.
● Fees related to legal ramifications.
● Charges related to hacking damage.

After the initial loss caused by cyber-attacks, there are many other consequences – incurring huge costs towards legal settlements, forensics being one of the most prominent. Make sure that you’re covered.

Extortion & Blackmail:

The cost of a cyberattack differs depending on the size of the business involved, the type of attack and its impact. Blackmailing and extortion are all too often tools for cybercriminals. Cyber extortion occurs when someone holds online data belonging to you or your business “hostage” until the demanded ransom is paid. Cyber insurance provides coverage to mitigate the financial impact of such attacks.

Interruption of business:

As expected, business operations and routines may be interrupted due to a cyber attack. Suppose this does occur, and the interference has a detrimental effect on daily business dealings. In that case, a cyber insurance policy can cover any costs incurred due to the breach. Businesses have lost precious time due to cyber breaches, so it is vital to ensure you’re covered.

Still not convinced cyber insurance is necessary?

The primary reason you should invest in cyber insurance is to protect your company and its assets. Many organizations are unaware of the value of their data, which can be worth millions of dollars in the event of a cyber attack. Cybercriminals often use malware and phishing scams to access personal information such as health records, financial information, and bank details. Additionally, hackers can manipulate websites, modify programs, tamper with networks and devices, and even access personal data that is often confidential.

Cybercrime is on the rise – it affects small and large businesses. In fact, every 39 minutes, a company becomes a victim of cybercrime. Having a cyber insurance policy in place can assist in mitigating the risk of these attacks and, in the event of one, can help you recoup your losses.

Protect Your information today

Life happens online 24/7. So does crime. At Kainos, we know just how important cyber insurance is to protect data.

Whether you’re looking for a way to protect your business or ensure your personal information doesn’t fall into the wrong hands, consider cyber insurance from South Africa’s top short-term insurers.

Cybercrime isn’t going away in the foreseeable future. It’s best to be safe and safeguard yourself from this growing problem today. Implementing a cyber insurance policy could be one of the best business decisions you’ll ever make. Call one of our insurance specialists to see how we can help you gain peace of mind.