As cyberattacks are an increasingly large problem, the need for cyber insurance as a means of protection is more important than ever before.
Cyber insurance, also known as cyber-liability insurance, is a policy to help protect organizations from the fallout of cyberattacks and hacking threats. The insurance can help minimize business disruption and potentially cover some of the financial cost of dealing with and recovering from an attack.
Any business with an online component, that sends or stores electronic data, or relies on technology to conduct its operations, could benefit from insurance. Cyber criminals could attempt to break into a network and steal personal data belonging to customers or staff, intellectual property, or sensitive financial data. The most common claims are made from ransomware incidents, fund-transfer fraud attacks, or business email compromise scams.
The cost and coverage of an insurance policy may vary depending on several factors: the size of the business, annual revenue, industry, type of data, and the overall existing security of the network. The policies are designed to cover the costs of security failures like data recovery and system forensics, as well as potential legal defense or customer reparations.
While cyber insurance does not cover every instance of attack possible, and will not instantly solve all of your cybersecurity issues, it can help when you need it the most. To learn more details about the importance of cyber insurance, visit here.