"When you consider that most companies use the cloud, they have a serious exposure to business interruption losses," Timothy Zeilman, vice president for HSB, said in a statement. (Photo: iStock)
Three-quarters of U.S. businesses use the cloud for data storage, and almost half have had a service interruption with losses, in some cases totaling up to $1 million or more, a survey for The Hartford Steam Boiler Inspection and Insurance Company (HSB), part of Munich Re, has found.
The survey showed that 41% of businesses have experienced an interruption of cloud services at some point; five percent were not sure.
Other key findings
- Seventy-four percent of the businesses surveyed used the cloud.
- Thirty-two percent of businesses surveyed in 2018 had experienced a ransomware or other cyberextortion attack in the past year.
- Thirty percent reported $250,000 to $1 million in business losses.
- Almost one-half (43%) paid the ransom with $1,000 to $5,000 being the amount that was most frequently demanded (43% of the cases).
Methodology
Zogby Analytics was commissioned in 2018 by HSB to conduct a survey of 403 senior business executives in the U.S. The businesses ranged from companies with revenues of less than $5 million and fewer than 50 employees to $200-250 million in revenue and more than 500 employees.
"When you consider that most companies use the cloud, they have a serious exposure to business interruption losses," Timothy Zeilman, vice president for HSB, said in a statement. "Technology has rewards but businesses must prepare for the risks."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.