There have been many corporate data breaches in the last couple of months that have taken over headlines. However, Allianz Global & Specialty recently released a report that show that future cyber threats will be in the form of intellectual property theft, business interruption (BI), and cyber extortion. According to Allianz, the fallout of a cyber attack or an operational or technical failure is often underestimated by many businesses. The report predicted that the BI costs would be equal or exceed all direct losses from data breaches and that the business interruption exposures are very significant in various sectors, including manufacturing, telecoms, media, and logistics. It is important to keep in mind that business interruption can also be caused by human error or technical failure. For example, the New York Stock Exchange suspended $28 trillion worth of stocks in July of 2015 because of a computer glitch. In the same month, almost 5,000 United Airlines flights were impacted due to a network connectivity issue. Due to issues such as these, Allianz is predicting that BI will be regarded as a major element and key risk of the cyber insurance landscape in the next five to 10 years. BI can cover a broad range of business IT computer systems as well as extending to ICE that is used by energy companies or to robots that are used in manufacturing. With all of the threats that your business faces, you should have the peace of mind that you deserve knowing that you are covered in case of any peril. Contact the independent insurance professionals at Bell Black Insurance in Rexburg, Idaho for all of your business insurance coverage needs. We will work with you to ensure that you have the coverage that need, all at the right price to fit your budget.
