The Devastating Cyber Spotlight: Why Your Business Needs Cyber Insurance

In today’s digital age, where businesses rely heavily on technology and data, the risk of cyber breaches has become a looming threat. Cybersecurity Awareness Month serves as a timely reminder of the importance of protecting your business from cyberattacks. One critical aspect of this protection is cyber insurance. In this blog post, we’ll explore what cyber insurance is, why it’s essential, the potential risks of cyber breaches, the staggering cost of a breach in the U.S., a real-life case study, and how you can take proactive steps by getting a cyber insurance quote.

Concept of cyber security, user type login, and password, keeping user personal data safe, encryption, secure internet access, cyber security.
Concept of cyber security, user type login, and password, keeping user personal data safe, encryption, secure internet access, cyber security.

What is a Cyber Breach?

A cyber breach is not merely an unfortunate IT hiccup or a minor inconvenience; it’s a cataclysmic event that can have devastating consequences for businesses and individuals alike. In essence, a cyber breach occurs when cybercriminals successfully infiltrate a company’s or an individual’s digital systems, gaining unauthorized access to sensitive data and information.

What is Cyber Insurance?

Cyber insurance, also known as cyber liability insurance or data breach insurance, is a specialized policy designed to protect your business from the financial fallout of cyberattacks and data breaches. It serves as a financial safety net, covering expenses related to breach response, legal fees, notification costs, and more.

Businessman shake hand with machine or robot
Businessman shake hand with machine or robot

The Risk of Cyber Breaches

In today’s digital landscape, cyberattacks loom as a constant threat, and they can take on various forms, from cunning phishing schemes to insidious ransomware attacks and data breaches. Small and medium-sized businesses, in particular, find themselves in the crosshairs of these malicious actors. This vulnerability is often due to their comparatively fewer resources and potentially weaker cybersecurity measures.

It’s essential for businesses of all sizes to grasp the gravity of these risks. By understanding the ever-evolving landscape of cyber threats, you can fortify your defenses and take proactive steps to safeguard your valuable data and assets. In this article, we’ll delve deeper into the diverse array of cyber risks your business may encounter and how to shield yourself from them.

The Staggering Cost of a Cyber Breach in the U.S.

The financial impact of a data breach can be devastating. In the U.S., the average cost of a data breach reached a staggering $9.48 million in 2023. This figure includes various expenses, from legal fees to lost business opportunities.

average cost of a data breach in the u.s.

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Real-Life Case Study: MOVEit Breach 2023

In May, the notorious Cl0p cyber gang exploited a zero-day SQL injection vulnerability, targeting Progress Software’s MOVEit Transfer app. What began as a single breach quickly escalated into a global catastrophe, impacting numerous organizations and individuals.

Some of the companies affected are listed below:

  • Shell, a global oil and gas conglomerate.
  • The University of Georgia.
  • Investment fund Putnam.
  • Financial institutions 1st Source and First National Bankers Bank.
  • Landal Greenparks in the Netherlands.
  • Financial software provider Datasite.
  • Educational non-profit National Student Clearinghouse.
  • And many more!

However, this was just the beginning. Cl0p claimed to have stolen data from “hundreds of companies” and demanded a ransom to prevent information leaks. True to their word, they began publishing victim names on the dark web, continuing to do so in the weeks that followed.

The magnitude of this breach is staggering, impacting over 1,000 organizations and 60 million individuals worldwide. The majority of known victims are in the United States (84.7%), with some of the hardest-hit organizations including Maximus, Pôle Emploi, Louisiana Office of Motor Vehicles, Colorado Department of Health Care Policy and Financing, and Oregon Department of Transportation.

This incident underscores the daunting challenges of cybersecurity and the severity of supply-chain compromises. While preventing zero-day vulnerabilities may be challenging, organizations must acknowledge the inherent security risks in the digital age, especially when third parties are involved. With over 60% of U.S. businesses affected by software supply chain threats, proactive risk mitigation and cybersecurity measures are essential to safeguard against inevitable breaches.

As demonstrated by the MOVEit Transfer breach, supply-chain compromises are costlier and harder to identify and contain, emphasizing the need for robust security practices and thorough risk management in today’s interconnected digital landscape.

How Cyber Insurance Helps Against Cyber Breaches

  • Financial Protection: Cyber insurance covers the financial costs associated with a data breach, including legal fees, regulatory fines, and expenses related to notifying affected parties.
  • Data Recovery: It can assist in data recovery and restoration, helping you regain access to critical information and systems after a breach.
  • Third-Party Liability: Cyber insurance protects your business from liability claims by affected third parties, such as clients or partners, due to a breach.
  • Breach Response Team: Many policies provide access to cybersecurity experts who can help manage and mitigate the breach’s impact, guiding your organization through the recovery process.
  • Business Interruption: Cyber insurance often covers income loss resulting from a breach-related interruption of your business operations, helping you stay financially resilient during challenging times.
  • And Much more!

Take Action: Get a Cyber Insurance Quote

Don’t wait until it’s too late. Cyber insurance is a proactive step toward safeguarding your business and its future. Reach out to us today for a cyber insurance quote tailored to your needs. Protect your assets, your reputation, and your peace of mind.


Cyber insurance is no longer a luxury but a necessity in today’s digital landscape. As cyber threats continue to evolve, safeguarding your business and its sensitive data is paramount. By understanding the risks, knowing the potential cost of a breach, and learning from real-life examples, you can make an informed decision to protect your business with cyber insurance.

Sherry BermanSherry Berman
17:55 08 Dec 22
We just moved over to e3 with Chris Stone, 1 1/2 years ago. Our house flooded during snowmeggedon in Texas last February. The insurance companies were overwhelmed with phone calls from Texas. Our insurance company was not responding to us on a timely basis, and because of the supply chain shortage, we knew we needed to act quickly. Chris knew who to talk to at our insurance company, and was a total advocate for us and made sure that our needs were being taken care of. Our last insurance agent was the advocate for the insurance company, not us. Chris knows the business inside out. He guided us along the process of what to do. e3 represents many different insurance companies, which gives Chris the ability to guide you into the best policy that meets your needs. He explains the insurance lingo in layman terms, and makes sure that you and your family are protected. My husband and I totally trust Chris to give us the best policy with in our budget.
Andy BermanAndy Berman
21:56 07 Dec 22
e3 Insurance and Chris Stone are simply the best!! After experiencing a flood in our house and a total redo necessary, Chris made the experience completely seamless!! There simply is no one better!!
Alex ThipkhosithkunAlex Thipkhosithkun
19:32 03 Nov 22
I can't say enough good things about Chris at e3 Insurance. He really is an expert in his field and was really helpful and thoughtful through my home and car insurance purchasing experience. But it doesn't stop there. Recently, I was facing a relatively stressful plumbing situation with my newly purchased house and after talking to Chris and putting me in contact with the right people, they had someone come out THAT afternoon-- Amazing!
Austin SandozAustin Sandoz
14:45 06 Oct 22
Chris was a client of mine for a long time. When I reached out to get a quote I was blown away. I found out my brand-new 2022 Jeep was severely underinsured and I had little to no protection for my assets.After comparing my old policy side by side with my new policy he was able to quadruple my coverage and protect my assets for LESS than what I was paying before. When it's done right, it's done right.
Sheryl KlousiaSheryl Klousia
14:29 06 Mar 22
Chris has been extremely helpful in finding us great policies for house and car insurance. He reviews our policy yearly to ensure we are getting the best rate and best coverage… and recommends changing when needed. We are very satisfied with his service… he has saved us so much over the 3 years that we have been with him ! So glad we found him. Our kids all use his services also !

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