What is cyber insurance?
As we all know already, there is a good side of technology, and there is the dark one. Technology helped in every aspect of our lives, but with its developments come some new threats. Cyber attacks are evolving rapidly and so we have to coevolve and learn to defend ourselves. Data breaches are not a rare thing anymore and they can cost a company a lot of money. As we are now aware that there’s a really good chance that our company will get attacked eventually, there is a good reason to consider getting some sort of insurance. The goal of cyber insurance, or cyber liability coverage, is to mitigate the risks and costs that come with trying to get back on your feet after a cyber-related security breach.
Why you need it?
The popularity of cyber insurance began rising back in 2005 and it’s estimated that by 2023, the total value of premiums will be around 7 and a half billion dollars. A lot of US companies are now buying the insurance and for a good reason. You’re risking a lot by not being insured – not just your money, but the trust of your users, and your reputation. Many businesses fall apart after a cyber attack and no one wants to be the next one to go out of business. Cyber attacks are costing the global economy around 600 billion dollars annually, meaning that the solution in the form of cyber insurance was inevitable. Experts from ICS Austin also advise that you consider working with a third party company that can work on preventing security breaches and work on repairs.
The majority of insurance companies offer some form of cyber insurance. Sometimes it’s a part of their full business insurance policy, like it is with Embroker and their startup program, and sometimes it’s an add-on on the existing policies.
What does cyber insurance cover?
Cyber insurance usually covers the damage that’s been done to you and your business and the damage that’s been done to your customers. Some of the main expenses include: legal fees, data recovery, system repairs, a ransom that you need to pay in order to retrieve the data, forensic investigation, and similar. Cyber insurance, however, doesn’t cover the expenses that can be really hard to calculate such as lost revenue or lost productivity costs. Also, if your security is just poor or your employees negligent, an insurance company will not be paying for your mistakes and expenses. Even though you are insured, you should always think about the quality of your protection and always have a security expert to make sure that everything is as it should be.
When the price is concerned, it’s hard to say exactly how much the insurance will cost without speaking to your agent. You have to do some research, see what some of the prices are, and then just look for an insurance company that offers everything you need for the best price. The price can also vary depending on your industry, exposure risk, business size, gross revenue, and current state of your security systems.