In the past, cyber insurance was a luxury for those with large businesses. However, today it is becoming increasingly common for small and medium-sized businesses to take out cyber insurance policies in order to protect their data and systems.
The idea behind cyber insurance is simple: you pay a premium on the basis that if your business suffers any loss or damage from a cyber attack then you will be compensated for it. This coverage can be important for small businesses that don’t have the resources to invest in expensive security measures or for those who simply want peace of mind that they will be covered if something goes wrong.
Even though Blockchain Technology promises to sort out the issue of data breach, businesses and organizations still experience cyber-attacks.
What is cyber insurance?
Cyber insurance is a form of liability coverage that provides protection against loss or damage to your business’s information and technology infrastructure. It’s designed to cover the cost of any losses or damages that you suffer as a result of a cyber attack, including data loss and theft.
Cyber insurance is an essential part of any business plan. It is a necessity for any business offering financial services. Not only does it protect your organization from the financial side of a data breach, but it also helps to prevent lawsuits from companies that have been affected by fraudulent activity. In fact, many people consider cyber insurance to be one of the most important types of coverage available today.
The good news is that cyber insurance can be found at reasonable prices and can be customized to meet your specific needs. Here are seven things you should know about cyber insurance before deciding if it’s right for you:
1. Cyber insurance is a must-have for any business
2. You can choose from several types of coverage
3. It can help prevent a data breach from becoming a lawsuit
4. Your company might need to pay out a lawsuit if someone else is damaged by your data breaches
5. It gives you the ability to cover third-party claims against your organization
6. It provides coverage for all types of critical infrastructure, including power plants and oil fields
How does cyber insurance work?
Cyber insurance typically involves two types of coverage:
1. Business interruption
This type of coverage protects your business from financial losses resulting from a temporary interruption in operations due to an attack on your IT infrastructure. For example, if hackers were able to shut down your network for several hours, this type of policy would pay for lost productivity during that period. Business interruption coverage also covers the costs associated with repairing damage caused by an attack and restoring operations once they’re restored.
2. Data recovery
This type of coverage pays for the cost of recovering lost or destroyed data after it has been stolen or damaged through an attack on your IT infrastructure. This can include anything from lost computer files to documents stored in the cloud or other online storage methods.
Types of cyber insurance
The most common types of cyber insurance include:
1. Business interruption coverage (BI)
This coverage provides financial compensation after a cyber attack has caused severe damage to your business operations.
2. Data breach coverage (DBC)
This coverage provides financial compensation after a hacker has stolen personal information or proprietary data from you or your business.
3. High-value property damage and loss (HVPLL)
This coverage provides compensation when hackers cause severe damage to your company through malicious code, malware or other means. This could include stolen personal information, payment card numbers and other sensitive personal data that could be used for identity theft, fraud or other illegal activity.
