When you opened your business, you knew you needed some basic insurance, like fire and theft, but have you thought about cyber insurance? Wikipedia defines cyber insurance as, “a specialty lines insurance product intended to protect businesses, and individuals providing services for such businesses, from Internet-based risks, and more generally from risks relating to information technology infrastructure, information privacy, information governance liability, and activities related thereto.”
So, why would a business like yours want or need cyber insurance? Your business could incur some significant costs if you were infected with ransomware, malware, a virus that reeks havoc on your network, or if someone breaks into your network and steals data or causes some type of damage. If this were to happen to you, you are going to have to figure out what went wrong, how the cyber criminals got in, whether they are still in, and what if any, data was stolen.
This type of investigation is done by cyber security experts, and they don’t work for free! That’s where your cyber insurance policy kicks in. It can cover the cost of paying a ransom should you choose to do so, recovery costs from breaches, such as the costs of having to contact everyone affected by a breach of your systems and credit monitoring if required. While the decision to purchase cyber insurance is ultimately up to you, we highly recommend that cyber insurance is a component of your incident response strategy, whether you’re a company of 2 or 2,000.
Cyber Insurance helps your business by adding another layer of business continuity. It is there to help you keep your business running while you recover from a cyber attack. Make no mistake, cyber insurance is not a replacement for cyber security. Just like you still lock the doors at night even though you have insurance against theft, you still need to secure your network from attacks.