Cyber Insurance and Why You Need It
Does your company need Cyber insurance? Yes!
According to the 2020 World Economic Forum Global Risks Report, cyber-attacks are the second-highest threat to businesses and are causing more damage than ever before.
Previously, attackers would encrypt your data and demand a ransom for the decryption key.
Many businesses refused to pay the ransom and chose to rebuild their data from backups. Now, some attackers threaten to release the data to the internet and even directly contact the individuals identified in the data breach. This exposes organizations to fines for data breaches and severe loss of business reputation. Good backups are no longer good enough!
Network protections are essential, they are not able to prevent 100% of attacks. Despite the best efforts of IT professionals, it is humans, not machines, that are often the biggest weakness that criminals can exploit. Attackers are targeting any potential source of a payout, from multi-billion-dollar companies to individuals. Ultimately, everyone is vulnerable.
Below are examples of coverages which should be included in a comprehensive cyber security policy:
- Legal expenses
- Data restoration
- Negotiation and payment of a ransomware demand
- Breach notification to consumers
- Setting up a call center
- Public relations expertise - IT forensics
- Media Liability
- Credit Monitoring and Identity Restoration
- Privacy Liability
- Network Business Interruption
- Errors and Omissions
- Social Engineering
- Reputational Harm
Having a comprehensive cyber insurance policy in place will help protect you if your business becomes the next victim
Cyber insurance can assist with the costs of rebuilding your network and your reputation. It is critical that you discuss your options with a qualified insurance agent who has experience with cyber security policies!