Technology attorney explains why operating without cyber insurance could be devastating to your firm
Warren Buffet recently made national headlines when he gave hesitant comments about cyber insurance in regards to his company Berkshire Hathaway Inc. Buffet explained that he thinks cyber insurance is too new, and he would rather forgo the protection and assume any possible costs as a result of a data breach.
But is this outdated and dangerous thinking?
Recent statistics reveal that the cybersecurity industry will reach the $181.77 billion by 2021. And Deloitte has just announced that they will spend $600 million on cybersecurity in the next 3 years in an attempt to strengthen their defenses in the wake of their 2017 data breach which could have impacted many of their high-profile clients.
Operating without cyber insurance in this day and age is unwise. From Equifax to Yahoo! to Verizon, it’s clear that no industry and no company, no matter how large, is safe from cybercriminals. Yet only about half of United States companies have cyber insurance, and nearly 30 percent of companies say that they have zero plans to purchase cyber protection plans in the future.
Says Marcus Harris, technology attorney.
That is a troubling trend, says Harris, who is a partner at Taft Stettinius & Hollister LLP. Companies who operate without cyber insurance assume that they can survive a data breach, but we are reaching a point where cyber hacks could sink a firm, says Harris.
While business leaders like Warren Buffet are geniuses at making a profit, many people are woefully uninformed about technology. It’s true that the cyber insurance industry is very new, but that doesn’t mean that companies should sit on the sidelines and take a “wait and see” approach. Instead, they should seek out experts who DO know the industry and have the experience and education to protect your company and your clients.