Cyber insurance may be a novel concept for many businesses, even as the threat of malware and ransomware grows ever more prevalent. Those in the IT world understand fortifying their networks and taking proactive steps to fight cybercrime – and many have gone to the next level and hired a managed services firm to manage cybersecurity threats and issues. However, many have not yet considered one of the most important steps they can take to protect their business should a breach occur – cyber insurance.
The interconnected nature of our global economy provides companies with significant benefits – and one huge issue. The more your organization depends on technology, the more the potential of cybercrime, malware attacks, and data breaches affecting your reputation and revenue. Studies in the last several years have proven that 60% of businesses – no matter their size – have experienced some form of third-party cyber attack – and the numbers are growing. It is important to note that SMBs are not immune to threats – in fact, criminals in this field seem to favor small businesses as a victim as they tend to have fewer safeguards in place.
Since most companies’ success relies on the capability to run a successful web operation, the possibility of a cyber attack is high. It is, therefore, easy to understand why many are turning to cyber insurance to provide another layer of protection in case they are victimized by cybercrime.
Cyber Insurance in Integral to the Overall Cyber Plan
Cyber insurance obviously doesn’t avoid an incident of a data breach – but it can help a company to respond to an attack while protecting their business profit and customer reputation. Just as a homeowner does everything in their power to protect their home, car, and personal possession with an insurance policy, business owners can take the same precautions to safeguard what they have built professionally.
If the business leaders have not already conducted a comprehensive risk assessment for the organization, it is essential to do so. Most cyber insurance providers can provide professional advice regarding how to best prevent becoming a victim, as well as the appropriate level of risk insurance to protect you should that attack occur. Depending on your insurance provider, cyber insurance may offer a spectrum of possible coverage options to protect the business. Cyber insurance typically provides coverage for expenses related to a claim or lawsuit filed after a data breach.
If a company aggregates significant amounts of customers’ data, such as credit card numbers, social security information, or medical data – they are at an elevated risk of being targeted by cybercriminals.
What Can Cyber Liability Insurance Offer?
Insurance policies and coverages will vary depending on a business’s requirements and scope. However, cyber insurance should provide the following benefits at a minimum:
- Manage notification of customers when a data breach or cyber attack occurs
- Cover the expenses related to public relations activities meant to restore or maintain a company’s reputation
- Cover all costs of technology consultants and resources to help repair the effects of the breach
- Cover legal, litigation, and settlement expenses if sued by customers for failure to protect personal data information
While cyber insurance may be a new concept for your company, it may be the next practical step to ensuring that your business is protected no matter what may occur.
Alliance IT is a managed services company based in Sarasota. We provide comprehensive VoIP, security, and network services, as well as 24 x 7 monitoring and Microsoft platform support. How can we help you?
