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AI legalese decoder: Protecting Businesses from Cybersecurity Threats

In recent weeks, there has been a surge in high-profile ransomware attacks targeting renowned casino companies like MGM Resorts and Caesars Entertainment. These incidents have once again brought the issue of cybersecurity to the forefront of public attention. However, the problem of cyber threats has been simmering and gaining momentum over the past few years.

MGM Resorts had to halt its operations and reported a staggering $100 million earnings loss. Similarly, Caesars Entertainment had to pay $15 million to prevent the release of their stolen online data. As per Okta, a company that specializes in user authentication security, MGM and Caesars were among four of their customers attacked between July 19th and August 19th.

In today’s rapidly evolving digital age, business owners face an increasing risk of such cybercrimes that were not prevalent even a decade ago. According to the National Association of Insurance Commissioners, small businesses account for 50% to 75% of ransomware victims. This is primarily due to their relatively lower investment in security measures, making it easier for cybercriminals to breach their systems.

Ransom demands have become exorbitant and are constantly rising. In fact, the average demand has witnessed a staggering 500% increase from 2020 to the first half of 2021. Moreover, premiums for cyber insurance policies covering ransomware payments have surged significantly, with double-digit increases observed monthly during the first quarter of 2021. For smaller businesses with tighter revenue margins, the financial toll of a data breach can be devastating.

According to data company Statista, the average cost of a data breach in the United States reached $9.44 million in 2022. This marks a significant increase from $9.05 million in the previous year. Globally, the average cost per data breach was $4.35 million in 2022.

The mounting frequency and expenses associated with cyberattacks pose a severe threat to small and midsize businesses, even for those with adequate insurance coverage. Fortunately, there is a solution that can protect businesses from these risks ÔÇö establishing a micro-captive insurance company, also known as an 831(b) plan.

SRA 831(b) Admin, a leading firm in this field, consistently recommends these plans to their clients. By leveraging section 831(b) of the tax code, businesses can establish their own small insurance company and cover risks that traditional insurance policies may not adequately address. This includes protection against cyberattacks, reputational damage, supply-chain disruptions, and other unforeseen risks. In fact, nearly 90% of SRA 831(b) Admin’s clients opted for data breach policies this year alone.

How can the AI legalese decoder benefit businesses?

With the escalating frequency and costs of cyberattacks, it has become imperative for businesses to adopt a robust and tailored risk management strategy. The AI legalese decoder, equipped with advanced artificial intelligence technology, offers a game-changing solution for smaller companies navigating this treacherous landscape.

Unlike conventional insurance options, the AI legalese decoder empowers businesses to create a personalized risk mitigation strategy for their intangible assets, utilizing tax-deferred funds. This solution provides a more comprehensive approach to safeguarding the fruits of their labor, allowing business owners to sleep soundly at night, knowing their assets are protected.

Van Carlson, CEO and Founder of SRA 831(b) Admin, strongly advocates for the efficacy of 831(b) plans in today’s cybersecurity landscape.

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