What Is Cyber Insurance?
Do you have a cyber insurance policy? If so, what are you doing to minimize the risk of a breach occurring on your network?
Following the recent spike in the volume of cybercrime cases worldwide, businesses are looking towards cyber insurance to help mitigate this threat. But do you understand what your cyber insurance policy covers? How is it built? Are you taking the necessary measures to keep the risk of data breaches at a minimum?
Watch this short video to discover more about cyber insurance:
What Is Cyber Insurance?
Cyber insurance covers your organization in case of a cyber-attack or data breach where sensitive client data is affected. By bringing in the help of a trusted cyber insurer, you can protect your business from the financial and reputational damages caused by cyber-attacks.
A cyber attack could involve anything from malware to ransomware attacks and can impact your organization’s finances and reputation significantly. In case your organization’s network is breached, you’ll need a considerable amount of time and money to regain control of your network and bring back client confidence.
Because a cyber insurer shoulders a portion of the financial burden in the event of a data breach, your business can get back up and running in the shortest time possible. What’s more, your insurer can help you notify your clients about the cyber attack. This will help minimize the cost of repairing your network and recovering your data. In fact, some cyber insurers include identity recovery protection and credit monitoring services in their offerings to help re-establish customer confidence in your organization.
There isn’t any “one-size-fits-all” solution when it comes to cyber insurance. Instead, you typically have to develop a tailored policy based on your organization’s unique needs.
Do You Need a Cyber Insurance Policy? Short answer: yes. With more devices connecting to your network, your organization becomes increasingly open to cyber attacks. Just like you insure your company against natural disasters, you also need to cover your business against cyber risks. Should you become the victim of a significant data breach, you may not have the resources on hand to deal with the challenges. Having a cyber insurance policy will ensure cyber-attacks don’t cripple your company.
What Does a Cyber Insurance Policy Cover? Cyber insurance policies usually cover first and third-party claims. First-party coverage applies whenever your organization suffers a data breach, a ransomware attack, or any other cyber attack.
Many states now have laws that mandate businesses to notify all individuals whose private data is inappropriately accessed or stolen in a breach. In the case of a significant breach in numerous clients’ personal information, notifying all of them could become quite expensive. First-party coverage enables you to cut down on the costs associated with notifying the clients whose data has been stolen, damages to your network, and so on.
Third-party party coverage usually encompasses penalties and lawsuits for violating data regulations. For example, if it’s determined that your company’s negligence led to a data breach, any victim that had their information breached would have sufficient grounds to sue you. However, with third-party coverage, you bring in a cyber insurer to help with covering the expenses associated with such lawsuits.
How Is a Cyber Insurance Policy Built? How do you choose the right cyber insurance policy for your business?
Your choice of the policy you’d like to build depends on:
- The scenarios for which you want to be covered.
- Whether or not you’d like a packaged policy.
Cyber insurance policies cover a wide-ranging list of first and third-party situations. When developing your policy, you need to tailor it to provide comprehensive coverage for most scenarios. Alternatively, you could customize it to have à la carte coverage, meaning it only covers the scenarios you choose.
Looking to Secure Your New Jersey Organization From Cyber Attacks & Data Breaches?
Our experienced cybersecurity specialists at Baroan Technologies are here to help you find the right cyber insurance policy that works for your business. Baroan Technologies will also review your current policy to make sure that it is proper for your business. At times the coverage selected is not in line with the type of business you have, and there are specific steps that an organization MUST take to file a claim. Not knowing these steps can mean that the coverage will not be there for you after a data breach, and you cannot file a claim. Don’t wait until after an incident happens to find out.
Give us a call today at (201) 796-0404 for a review.