Cyber insurance is an insurance product designed to help businesses hedge against the potentially devastating effects of cybercrimes such as malware, ransomware, distributed denial-of-service (DDoS) attacks, or any other method used to compromise a network and sensitive data. Also referred to as cyber risk insurance or cybersecurity insurance, these products are personalized to help a company mitigate specific risks.
Most likely, you do. As the number of applications, devices, etc. increases, an organization becomes more vulnerable to attacks. Just like businesses insure against business problems, natural disasters, and physical risks, they need insurance coverage for cyber risks as well.
If a costly breach occurs, your company may not have the resources on hand to combat these issues or recuperate losses. Cybersecurity insurance can provide support, so these attacks do not cripple your business.
Most cyber insurance plans cover a broad range of cyber risk losses that may unexpectedly arise from cyberattacks. In addition, some plans can offer coverage for physical damage to hardware or coverage for business income loss. Plans can be personalized depending on your current business security posture.
No. Cyber risk insurance can be a great way to mitigate the damage caused by a breach, but it should complement cybersecurity technology as part of an overall cyber risk management plan.
Cyber risk insurers analyze the strength of a company’s cybersecurity posture before issuing any policy. Strong security postures allow for better coverage and, in some cases, access to enhancement coverages. Fragmented enterprise security approaches can make it difficult for insurers to fully understand an organization’s security posture. This can result in inadequate or poorly targeted insurance purchases by insured companies.
If your business has not invested in the appropriate cybersecurity solutions, then you may not qualify for insurance or it could be limited and expensive.