The professional world gets more reliant on technology with every passing day. No matter what industry you are in, it’s likely you have a great deal of interaction with digital data and devices. While the increased digitization of the working world has been great for efficiency, it also brings with it new risks that you have to defend against. If your company does not have cyber insurance, you may be exposed in the event of a digital attack.
What Is Cyber Insurance?
On a very basic level, cyber insurance coverage protects your business against threats by bad actors attempting to access your data and network. Once inside, they can easily do massive damage to your company in a short period of time. With cyber insurance, you are protected against damages as a result of their actions.
How Can Cyber Threats Attack Your Business?
A hacker accessing your data can pose a wide range of potential threats to your business, each of which hurts you in a different way. With ransomware, a program is installed on your computer that either prevents you from using your systems or grants access to your files, and the hacker threatens negative repercussions if you do not pay a set amount. Other criminals will attempt to access your servers in order to steal customers’ information. This can then be used for anything from credit card fraud to identity theft.
How Can Cyber Insurance Help Your Business?
The right cyber insurance policy can be the difference between continuing on as normal and your business collapsing in the event of a digital attack. There are policy options covering any potential fallout from an attack, and most providers will allow you to build a policy that protects against the areas you are most concerned with. Common areas of protection to consider include:
- Covering the cost of fees and penalties as a result of a breach
- Handling calls from clients who were compromised in the attack
- Identifying and repairing the security hole that allowed the attack
- Paying to hire a public relations firm to deal with fallout from the attack
- Compensating for income lost as a result of the account
- Paying out money to customers as compensation for the attack
- Paying off a ransomware attack
What Kind of Information Is at Risk?
Although data breaches have been carried out for many different reasons, the most common reason to intrude on a business’s network is to compromise the financial data of the company or its clients. If you store your clients’ payment information in your system, then the hacker can gain access to precious personal data, including addresses and credit card information. If your business also requires the storage of social security numbers, there is increased threat, as the fraud can escalate to identity theft.
What Determines the Cost of Your Cyber Insurance?
Any time you are adding a new expense to your company’s balance sheet, it’s natural to be concerned about the costs you are taking on. The cost of your cyber insurance coverage will vary depending on your provider as well as several other key factors. The more coverage you are seeking, the higher your rates will be. You will also likely be expected to pay a higher rate the more client information you are storing or the larger your company is. This makes you a bigger target, and as such, a higher risk of attack. Your provider will also likely assess your digital security, and any holes found will drive up your rates, so you should consider a full checkup of your digital security before shopping.
In the modern business world, cyber insurance is a must. If your business currently lacks any digital protection, get in touch with an insurance provider today and get protected.