Future-proofing tech companies against cyber threats
An article in our Plugged In tech and life sciences series
By Mitchell Foster II, Chief Underwriting Officer for Technology and Life Sciences
The tech industry faces growing challenges in safeguarding its operations and reputation. Because data breach incidents are on the rise, they are becoming less likely to make headlines, which may be giving businesses a false sense of security. However, tech companies impacted by these events can face reputational, financial and operational loss.
Four reasons tech companies are facing increased risk:
- New vulnerabilities: As tech companies expand their digital presence into new arenas, such as cloud services, IoT devices and remote work setups, these new avenues present new vulnerabilities that cyber attackers can exploit.
- More sophistication: Attackers are now using advanced techniques, including AI-driven malware and ransomware, making it even more challenging for businesses to prepare and defend against these threats.
- Deeper integration: The services provided by tech companies are often a linchpin for many other operations. Tech customers form the foundation for an unbelievable number of businesses, making their services integral to day-to-day operations.
- Wide-reaching impact: Many technologies have taken the place of humans in operational processes. If these technologies fail or are breached, even a small mistake can have an outsized impact.
What does this mean for tech businesses?
A single vulnerability in a tech company offering cloud services can be far more crippling to a technology company than hacking into a single retail store, given the vast amount of personal and confidential information available. For example, in 2024, one cybersecurity firm reported a 30% annual increase in attacks targeted at technology developers and service providers.*
A first-party cyber event can have a significant implication for a technology business, in several key areas:
- Financial: The financial impact of a data breach to a tech company can be enormous. Plus, cybercriminals believe that tech companies are more likely to pay ransoms to quickly regain access to their data and systems.
- Reputational damage: Tech is a high-profile industry, which can make a data breach from a tech company more likely a target of media coverage. This negative publicity can often erode customer trust and damage the brand, deepening the impact.
- Operations disruption: When a network is breached, or is under a cyberattack, this causes service downtime for customers that rely on the tech company. When day-to-day operations are halted, this leads to decreased productivity and lost revenue.
- Legal and regulatory consequences: A data breach may lead to compliance violations that result in fines for non-compliance with data protection laws and regulations.
To illustrate the risks that tech companies face, and how agents play a vital role, consider this example:
A managed service provider has a client base of over 5,000 businesses. This means they have a vast repository of sensitive and confidential data that requires protection. And the stakes are incredibly high, as any breach could not only compromise this data but also severely damage the tech company's reputation. The ripple effects of such an incident can be far-reaching, affecting customer trust and brand integrity.
In this scenario, it is crucial to offer coverage that can respond and enhance the data recovery process. Equally important is providing robust support to help clients manage the potential public relations fallout. This dual approach ensures that the company can maintain its operational stability and continue to thrive in the face of adversity.
Three things tech companies should do
Historically, the focus of data breach planning has been on reactive measures to respond when an attack occurs.
But now, more than ever, it is essential for tech companies to shift to proactive risk mitigation. This includes employing threat intelligence and predictive analytics to anticipate and mitigate risks before they result in a loss, including:
- Vaulted or air-gapped backup: Duplicate your data and ensure you can switch to the backup seamlessly in the case of an attack.
- Multi-factor authentication (MFA): Implement MFA to add an extra layer of security.
- Monitoring and patching cadence: Regularly monitor systems and ensure all software is patched promptly to mitigate vulnerabilities.
Additionally, partnering with a carrier like The Hanover can deliver additional value through solutions engineered for technology businesses, including preventative cyber services and proactive and responsive services if an event should occur, available through the Hanover CyberSecure Program™.
By adopting these strategies, tech companies can better protect themselves from evolving cyber risks and ensure the integrity and reliability of their services.
Let's start a conversation today
Contact a member of our technology or life sciences teams to learn more about our coverage and services, and how we can help you tailor a solution for you and your clients.
About the author
Mitch has more than 20 years of experience in the insurance industry, specializing in technology and life sciences over the past decade. He has held various underwriting leadership roles throughout his career. In his current role, Mitch is responsible for The Hanover's national strategy and appetite for technology and life sciences.
*Source: Cisco Talos
Related resources
Future-proofing tech companies against cyber threats
An article in our Plugged In tech and life sciences series
By Mitchell Foster II, Chief Underwriting Officer for Technology and Life Sciences
The tech industry faces growing challenges in safeguarding its operations and reputation. Because data breach incidents are on the rise, they are becoming less likely to make headlines, which may be giving businesses a false sense of security. However, tech companies impacted by these events can face reputational, financial and operational loss.
Four reasons tech companies are facing increased risk:
- New vulnerabilities: As tech companies expand their digital presence into new arenas, such as cloud services, IoT devices and remote work setups, these new avenues present new vulnerabilities that cyber attackers can exploit.
- More sophistication: Attackers are now using advanced techniques, including AI-driven malware and ransomware, making it even more challenging for businesses to prepare and defend against these threats.
- Deeper integration: The services provided by tech companies are often a linchpin for many other operations. Tech customers form the foundation for an unbelievable number of businesses, making their services integral to day-to-day operations.
- Wide-reaching impact: Many technologies have taken the place of humans in operational processes. If these technologies fail or are breached, even a small mistake can have an outsized impact.
What does this mean for tech businesses?
A single vulnerability in a tech company offering cloud services can be far more crippling to a technology company than hacking into a single retail store, given the vast amount of personal and confidential information available. For example, in 2024, one cybersecurity firm reported a 30% annual increase in attacks targeted at technology developers and service providers.*
A first-party cyber event can have a significant implication for a technology business, in several key areas:
- Financial: The financial impact of a data breach to a tech company can be enormous. Plus, cybercriminals believe that tech companies are more likely to pay ransoms to quickly regain access to their data and systems.
- Reputational damage: Tech is a high-profile industry, which can make a data breach from a tech company more likely a target of media coverage. This negative publicity can often erode customer trust and damage the brand, deepening the impact.
- Operations disruption: When a network is breached, or is under a cyberattack, this causes service downtime for customers that rely on the tech company. When day-to-day operations are halted, this leads to decreased productivity and lost revenue.
- Legal and regulatory consequences: A data breach may lead to compliance violations that result in fines for non-compliance with data protection laws and regulations.
To illustrate the risks that tech companies face, and how agents play a vital role, consider this example:
A managed service provider has a client base of over 5,000 businesses. This means they have a vast repository of sensitive and confidential data that requires protection. And the stakes are incredibly high, as any breach could not only compromise this data but also severely damage the tech company's reputation. The ripple effects of such an incident can be far-reaching, affecting customer trust and brand integrity.
In this scenario, it is crucial to offer coverage that can respond and enhance the data recovery process. Equally important is providing robust support to help clients manage the potential public relations fallout. This dual approach ensures that the company can maintain its operational stability and continue to thrive in the face of adversity.
Three things tech companies should do
Historically, the focus of data breach planning has been on reactive measures to respond when an attack occurs.
But now, more than ever, it is essential for tech companies to shift to proactive risk mitigation. This includes employing threat intelligence and predictive analytics to anticipate and mitigate risks before they result in a loss, including:
- Vaulted or air-gapped backup: Duplicate your data and ensure you can switch to the backup seamlessly in the case of an attack.
- Multi-factor authentication (MFA): Implement MFA to add an extra layer of security.
- Monitoring and patching cadence: Regularly monitor systems and ensure all software is patched promptly to mitigate vulnerabilities.
Additionally, partnering with a carrier like The Hanover can deliver additional value through solutions engineered for technology businesses, including preventative cyber services and proactive and responsive services if an event should occur, available through the Hanover CyberSecure Program™.
By adopting these strategies, tech companies can better protect themselves from evolving cyber risks and ensure the integrity and reliability of their services.
Let's start a conversation today
Contact a member of our technology or life sciences teams to learn more about our coverage and services, and how we can help you tailor a solution for you and your clients.
About the author
Mitch has more than 20 years of experience in the insurance industry, specializing in technology and life sciences over the past decade. He has held various underwriting leadership roles throughout his career. In his current role, Mitch is responsible for The Hanover's national strategy and appetite for technology and life sciences.
*Source: Cisco Talos
Related resources
Future-proofing tech companies against cyber threats
An article in our Plugged In tech and life sciences series
By Mitchell Foster II, Chief Underwriting Officer for Technology and Life Sciences
The tech industry faces growing challenges in safeguarding its operations and reputation. Because data breach incidents are on the rise, they are becoming less likely to make headlines, which may be giving businesses a false sense of security. However, tech companies impacted by these events can face reputational, financial and operational loss.
Four reasons tech companies are facing increased risk:
- New vulnerabilities: As tech companies expand their digital presence into new arenas, such as cloud services, IoT devices and remote work setups, these new avenues present new vulnerabilities that cyber attackers can exploit.
- More sophistication: Attackers are now using advanced techniques, including AI-driven malware and ransomware, making it even more challenging for businesses to prepare and defend against these threats.
- Deeper integration: The services provided by tech companies are often a linchpin for many other operations. Tech customers form the foundation for an unbelievable number of businesses, making their services integral to day-to-day operations.
- Wide-reaching impact: Many technologies have taken the place of humans in operational processes. If these technologies fail or are breached, even a small mistake can have an outsized impact.
What does this mean for tech businesses?
A single vulnerability in a tech company offering cloud services can be far more crippling to a technology company than hacking into a single retail store, given the vast amount of personal and confidential information available. For example, in 2024, one cybersecurity firm reported a 30% annual increase in attacks targeted at technology developers and service providers.*
A first-party cyber event can have a significant implication for a technology business, in several key areas:
- Financial: The financial impact of a data breach to a tech company can be enormous. Plus, cybercriminals believe that tech companies are more likely to pay ransoms to quickly regain access to their data and systems.
- Reputational damage: Tech is a high-profile industry, which can make a data breach from a tech company more likely a target of media coverage. This negative publicity can often erode customer trust and damage the brand, deepening the impact.
- Operations disruption: When a network is breached, or is under a cyberattack, this causes service downtime for customers that rely on the tech company. When day-to-day operations are halted, this leads to decreased productivity and lost revenue.
- Legal and regulatory consequences: A data breach may lead to compliance violations that result in fines for non-compliance with data protection laws and regulations.
To illustrate the risks that tech companies face, and how agents play a vital role, consider this example:
A managed service provider has a client base of over 5,000 businesses. This means they have a vast repository of sensitive and confidential data that requires protection. And the stakes are incredibly high, as any breach could not only compromise this data but also severely damage the tech company's reputation. The ripple effects of such an incident can be far-reaching, affecting customer trust and brand integrity.
In this scenario, it is crucial to offer coverage that can respond and enhance the data recovery process. Equally important is providing robust support to help clients manage the potential public relations fallout. This dual approach ensures that the company can maintain its operational stability and continue to thrive in the face of adversity.
Three things tech companies should do
Historically, the focus of data breach planning has been on reactive measures to respond when an attack occurs.
But now, more than ever, it is essential for tech companies to shift to proactive risk mitigation. This includes employing threat intelligence and predictive analytics to anticipate and mitigate risks before they result in a loss, including:
- Vaulted or air-gapped backup: Duplicate your data and ensure you can switch to the backup seamlessly in the case of an attack.
- Multi-factor authentication (MFA): Implement MFA to add an extra layer of security.
- Monitoring and patching cadence: Regularly monitor systems and ensure all software is patched promptly to mitigate vulnerabilities.
Additionally, partnering with a carrier like The Hanover can deliver additional value through solutions engineered for technology businesses, including preventative cyber services and proactive and responsive services if an event should occur, available through the Hanover CyberSecure Program™.
By adopting these strategies, tech companies can better protect themselves from evolving cyber risks and ensure the integrity and reliability of their services.
Let's start a conversation today
Contact a member of our technology or life sciences teams to learn more about our coverage and services, and how we can help you tailor a solution for you and your clients.
About the author
Mitch has more than 20 years of experience in the insurance industry, specializing in technology and life sciences over the past decade. He has held various underwriting leadership roles throughout his career. In his current role, Mitch is responsible for The Hanover's national strategy and appetite for technology and life sciences.
*Source: Cisco Talos
Related resources
Future-proofing tech companies against cyber threats
An article in our Plugged In tech and life sciences series
By Mitchell Foster II, Chief Underwriting Officer for Technology and Life Sciences
The tech industry faces growing challenges in safeguarding its operations and reputation. Because data breach incidents are on the rise, they are becoming less likely to make headlines, which may be giving businesses a false sense of security. However, tech companies impacted by these events can face reputational, financial and operational loss.
Four reasons tech companies are facing increased risk:
- New vulnerabilities: As tech companies expand their digital presence into new arenas, such as cloud services, IoT devices and remote work setups, these new avenues present new vulnerabilities that cyber attackers can exploit.
- More sophistication: Attackers are now using advanced techniques, including AI-driven malware and ransomware, making it even more challenging for businesses to prepare and defend against these threats.
- Deeper integration: The services provided by tech companies are often a linchpin for many other operations. Tech customers form the foundation for an unbelievable number of businesses, making their services integral to day-to-day operations.
- Wide-reaching impact: Many technologies have taken the place of humans in operational processes. If these technologies fail or are breached, even a small mistake can have an outsized impact.
What does this mean for tech businesses?
A single vulnerability in a tech company offering cloud services can be far more crippling to a technology company than hacking into a single retail store, given the vast amount of personal and confidential information available. For example, in 2024, one cybersecurity firm reported a 30% annual increase in attacks targeted at technology developers and service providers.*
A first-party cyber event can have a significant implication for a technology business, in several key areas:
- Financial: The financial impact of a data breach to a tech company can be enormous. Plus, cybercriminals believe that tech companies are more likely to pay ransoms to quickly regain access to their data and systems.
- Reputational damage: Tech is a high-profile industry, which can make a data breach from a tech company more likely a target of media coverage. This negative publicity can often erode customer trust and damage the brand, deepening the impact.
- Operations disruption: When a network is breached, or is under a cyberattack, this causes service downtime for customers that rely on the tech company. When day-to-day operations are halted, this leads to decreased productivity and lost revenue.
- Legal and regulatory consequences: A data breach may lead to compliance violations that result in fines for non-compliance with data protection laws and regulations.
To illustrate the risks that tech companies face, and how agents play a vital role, consider this example:
A managed service provider has a client base of over 5,000 businesses. This means they have a vast repository of sensitive and confidential data that requires protection. And the stakes are incredibly high, as any breach could not only compromise this data but also severely damage the tech company's reputation. The ripple effects of such an incident can be far-reaching, affecting customer trust and brand integrity.
In this scenario, it is crucial to offer coverage that can respond and enhance the data recovery process. Equally important is providing robust support to help clients manage the potential public relations fallout. This dual approach ensures that the company can maintain its operational stability and continue to thrive in the face of adversity.
Three things tech companies should do
Historically, the focus of data breach planning has been on reactive measures to respond when an attack occurs.
But now, more than ever, it is essential for tech companies to shift to proactive risk mitigation. This includes employing threat intelligence and predictive analytics to anticipate and mitigate risks before they result in a loss, including:
- Vaulted or air-gapped backup: Duplicate your data and ensure you can switch to the backup seamlessly in the case of an attack.
- Multi-factor authentication (MFA): Implement MFA to add an extra layer of security.
- Monitoring and patching cadence: Regularly monitor systems and ensure all software is patched promptly to mitigate vulnerabilities.
Additionally, partnering with a carrier like The Hanover can deliver additional value through solutions engineered for technology businesses, including preventative cyber services and proactive and responsive services if an event should occur, available through the Hanover CyberSecure Program™.
By adopting these strategies, tech companies can better protect themselves from evolving cyber risks and ensure the integrity and reliability of their services.
Let's start a conversation today
Contact a member of our technology or life sciences teams to learn more about our coverage and services, and how we can help you tailor a solution for you and your clients.
About the author
Mitch has more than 20 years of experience in the insurance industry, specializing in technology and life sciences over the past decade. He has held various underwriting leadership roles throughout his career. In his current role, Mitch is responsible for The Hanover's national strategy and appetite for technology and life sciences.
*Source: Cisco Talos