Why cyber insurance is no more an option but a necessity for businesses

Our workplaces have become increasingly digital especially during the pandemic times. In proportion to this, the number of cyber-attacks have skyrocketed during the recent times. This has made cyber security one of the most important business concerns in front of any business today. The government imposed restrictions while the world fighting Covid-19 see people have to work remotely and businesses have to adapt to new formulas and processes to be able to survive.

 

The challenges in remote working

Increasing number of people working remotely are an important factor triggering several security issues. It is a risky thing to access work files and complete works on their personal computers at home. Also, people working remotely can be using the corporate devices to conduct personal activities like web surfing, online shopping, and other kinds of financial transactions. All these situations can pose severe threat to businesses thereby expanding the surface area for the proliferators of threats.  

Portfolio of cyber security offerings

There are a number of cyber security offerings available today for businesses to choose from to protect them from cyber-criminals. Among the plethora of insurance products, cyber insurance is one of the least known products and solutions that are quite often undermined. Most small businesses do not think cyber insurance is a necessity for them. However, with the awareness spreading among businesses, more businesses are coming forward to invest in cyber insurance.  

What your business gets from cyber insurance

Cyber insurance plans cover the costs of data breach or cyber attach. The damages caused due to cyber-attacks can come under different categories like first party losses, and third party costs. This can also include the cost to customers who could have been impacted financially by the breach. Though the specific kinds of coverage can vary between different policies, provider and the typical needs of the buyer, the most common kinds of coverage offered by cyber-insurance policies range over the costs of forensic analysis of the cyber-attack, costs arising from interruption to business, the legal costs like regulatory penalties and the cost of lawsuits costs connected to public relations and the management of the firm’s reputation during the aftermath of the breach. 

Points to know while purchasing a cyber-insurance policy

The portfolio of cyber security measures necessarily have some limitations too. Any business purchasing a cyber-insurance plan may have to spend its own money to cover some of the costs associated with a cyber-attack or data breach. During a typical case of cyber-attack, a malicious code is often placed within the network of the given company.This will necessitate the company to bear the costs of baseline recovery, something like a new software or hardware. Such costs cannot be claimed from the cyber insurance protection. Though the policies can cover the public relations cost, the company may find it very hard to come out of the bad reputation it suffered due to the cyber-attack. If the current customers and prospective customers happen to lose faith in the business, the company’s performance and profits can be impacted down the line. A good cyber insurance broker can educate you on the various aspects of cyber insurance plans and will help you land on the most suitable policy that will suit your situation very well.

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