Does Your New Jersey Organization Need Cyber Security Insurance?

What would happen if your organization became the latest victim of a devastating cyber attack? Keep reading to discover how a cyber insurance policy will help protect your business from a wide range of cybersecurity risks.

Does Your New Jersey Organization Need Cyber Security Insurance?

What would happen if your organization became the latest victim of a devastating cyber attack? Keep reading to discover how a cyber insurance policy will help protect your business from a wide range of cybersecurity risks.

High-profile cyber incidents such as data breaches are quickly becoming the most prominent threats in today’s business world. Should your organization suffer a significant data breach, for example, the costs involved in mitigating such an attack could potentially bring your business to its knees.

More business leaders are now purchasing cybersecurity insurance policies to safeguard their companies against the growing online threat environment. But should you invest in a cybersecurity insurance policy for your business?

Watch our latest video to learn more about cybersecurity insurance:

Let’s take a closer look at some key considerations before deciding whether or not your business needs cyber insurance.

What Is Cyber Security Insurance?

Cybersecurity insurance (also known as cyber insurance) is designed to cover your business should you get hit with a cyber-attack that impacts client information. A cyber insurer shoulders part of the financial burden of regaining control of your network and restoring client confidence in your organization.

Who Needs Cyber Insurance? Do you process payments online? Or perhaps you use cloud systems to record business information and store client data in your computer systems? Whatever the case, you need to invest in cybersecurity insurance.

Contrary to what most company leadership units might believe, it’s not just the large corporations that are the targets of bad cyber actors. These days, even small to medium-sized businesses are frequent victims of phishing and hacking attempts. In fact, according to studies, 28 % of data breaches target smaller organizations. Unfortunately, most startups never recover from such incidents and go out of business in less than six months.

As a company leader, you’re a particularly attractive target for hackers looking to steal your company information. You might need to consider adding some additional protection by taking personal coverage.

What Does a Cyber Insurance Cover? Generally, cybersecurity insurance is aimed at helping businesses mitigate the costs associated with a data breach.

Such expenses include:

  • Business losses.
  • Notification costs.
  • Forensic investigations.
  • Lawsuits.
  • Extortion attempts.

When buying a cyber insurance policy, you must understand how the coverage relates to social engineering attacks, non-malicious employee actions, and network attacks.

However, cybersecurity insurance providers have been known to deny claims to organizations that failed to implement sufficient security measures. While cyber insurance can cover various security incidents, you can’t afford to neglect other aspects of your cybersecurity.

How Can You Determine Your Cyber Insurance Coverage? It’s vital that you know how much coverage your business actually needs. But first, are you taking the appropriate measures to minimize your organization’s exposure to breaches and other cyber risks?

Here’s a brief rundown of the indicators a cyber insurance provider will use to decide whether your company is eligible for coverage:

  • Encrypting your data.
  • Training your employees to recognize social engineering attacks like phishing attempts.
  • Implementing Endpoint protection.
  • Routinely assessing your network.

Beyond your apparent exposure to cyber risks, an insurer will consider other factors, such as your industry, gross revenue, and service offerings.

On your end, you need to determine how much financial damage a breach would most likely cause. A reputable cyber insurance provider should help you come up with fairly accurate cost estimates.

What Are Your Premium Deductibles? You may pay higher premiums if:

  • You store Personally Identifiable Information.
  • You have significant vulnerabilities.
  • Your revenue has grown.
  • You’re non-compliant with regulations like PCI DSS.

Need Professional Help With Your Cyber Insurance Policy In New Jersey?

Our experienced cybersecurity specialists at Baroan Technologies are here to answer any questions you have on cyber insurance.

Contact us now to schedule your initial consultation | Call us at (201) 796-0404.

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Baroan is a complete IT services & IT support company working with organizations in Elmwood Park and across the United States of America.

Written by Guy Baroan