Why Schools Need Cyber Insurance
The rise of remote learning in 2020 led to unprecedented cyber risks for schools. And that risk continues. In July 2021 alone, cyber attacks in the education and research sector increased 29% increase from the first half of 2021, according to Check Point Research. The educational sector holds a wealth of sensitive data from both students and employees, making schools a lucrative target for bad actors. At the same time, they usually don’t have great IT security. These attacks can have devastating direct and indirect effects including:
- Video conference disruptions
- Financial losses
- Damage to digital infrastructure
- Reputational damages
- Regulatory fines
Educational institutions need a comprehensive coverage plan that includes risk management and preventative measures, as well as liability coverage.
A Real-World Example
In March of 2021, Florida’s Broward County Public Schools suffered a massive ransomware hack from international malware group Conti. The hackers demanded $40 million, threatening to publish the stolen files if their ransom was not paid. Broward County is the sixth-largest school district in the country, but didn’t have $40 million on hand. As they had threatened they would, the hackers published 26,000 of the stolen files online.
Fortunately, few of the documents contained confidential information. However, not every school is so lucky. Protect student and staff privacy.
The Cost of a Breach
Global average cost of a data breach in the education sector: $4.77 million (IBM Cost of a Data Breach Report)
Average cost of per compromised record: $142 Between August and September 2020, 57% of all reported ransomware attacks were directed against these K-12 schools in the US.
Average cost of a ransom for an attack: $50,000
With the education sector under siege—and often unprepared—cyber insurance is an absolute necessity.
The Power of Comprehensive Coverage
First-Party Coverage
- Hiring forensic IT consultants to determine the origin of the breach
- Repairing digital assets
- Alerting affected students and personnel
- Establishing a hotline to answer questions from affected parties
Third-Party Coverage
- Legal representation
- Document preparation
- Regulatory fines
- Payouts to affected customers
Cyber Security Steps You Should Take: http://bit.ly/3UlYAin
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