Page 3 - FINAL - Brouse IR Year-End Newsletter 2021_Neat
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Cyberattacks in 2021 Demonstrate
Importance of Cyber-Risk-Insurance for 2022
By Craig S. Horbus By Jarman J. Smith
chorbus@brouse.com jsmith@brouse.com
As cyber-related incidents continue to grow in data breaches in 2021 surpassed 2020’s figure
1
number, we are advising companies to place even with three months remaining in the year.
even more emphasis on Cyber Risk Coverage for As the tactics of cybercriminals continue to
2022. The volume of new clients seeking out evolve and become more sophisticated, we can
representative breach counsel regarding cyber- anticipate that the number of data breaches in
attacks grew immensely in 2021. As a result, 2022 will be even higher than the numbers in
Brouse has been called to action in an expanded 2021. So how can organizations best protect
capacity. From this firsthand experience, we against cyber risks in the year ahead? By
have observed the need for many businesses prioritizing cybersecurity companywide, including
and organizations to prioritize cyber-risk compliance and incident response planning,
insurance coverage to contain their liability along with obtaining a comprehensive cyber-risk
in the event of a cyber-incident. Along with insurance policy, companies will be ahead of the
prioritization comes scrutinization of the policies curve when it comes to mitigating damages of an
and the coverage being provided. As companies inevitable attack.
and policyholders alike increase their awareness Cyber-risk insurance can be thought of as
of digital threats and their knowledge of a collection of coverages that protect your
coverage-related issues, the cyber-risk insurance company from a variety of incidents, including
industry is being called upon to provide not only data breaches, ransomware attacks, digital
an increase in coverage, but also adequate, or destruction, and the resulting damages of the
even new coverage, in historically weak areas foregoing. A comprehensive cyber-risk policy
to help ease liability concerns resulting from an will likely include more than a few separately
alarming number of cyberattacks that wreaked identified coverage options, but there are four
havoc throughout 2021. essential coverages that we would advise all
companies to carry to protect your interests
Cyber-Risk Insurance Essential to
Addressing Cyberattacks during a cyber incident.
We can expect another increase in cyber-related Extortion Coverage
attacks this year. Cyber-related impact events Extortion coverage operates as ransomware
such as ransomware and data breaches continue recovery support. It can provide monetary
to remain our number one focus as we head into reimbursement if your organization is forced to
2022. Looking back at 2021, the Identity Theft pay a ransom to regain access to compromised
Resource Center reported that the number of systems and/or for the return of stolen data.
1 See https://www.propertycasualty360.com/2021/12/29/cyber-insurance-in-2022-a-year-for-collaboration/.
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