What Is Cyber Insurance And Why Do You Need One?
In this era everyone is dependent on technology; be it for transferring data electronically or for protecting your valuable information like credentials. Due to too much involvement of internet in our lives, data breaches are more than common these days. In the last few years, data breaches have not only increased in numbers but also in legal fees and major fines.
Cybercriminals are no more known for targeting large business, insurance and banks; they are also trying their hands on small business. According to sources, 55% of the small businesses have faced the data breaches issues. If you’re wondering what can be done to protect and support you from the cyberattacks then the answer is “Cyber Insurance”.
In this post, we’re going to discuss what is cyber insurance and why do you need one!
What is Cyber Insurance?
Like health insurance gives your protection against the heavy medical treatment, bills and other expenses, the same way cyber insurance covers insured charges and financial damages from data breaches which are affected by cybercriminals attacks, ransomware, virus and other threats. Cyber insurance also comes handy when you have to file a lawsuit on a third party in case of data breaches. Users can use cyber insurance to file the lawsuit against the firm that fails to provide protection for the confidential and sensitive data.
Things That Are Covered by Cyber Insurance
Particular and individual policies may differ from one another that has been signed depending upon your interest, but the major cyber insurance can cover the following things:
Losses and damages from business interruption:
In case your selected organization is wound up or locked, then you can claim your cyber insurance to pay off your regular expenses and other unavoidable charges for the time being.
Loss of Data:
Cyber insurance covers the fees and charges retrieving the lost data and reconstructing data which fall into the category of cyberattacks, stolen or other damages.
Ransom demands & charges associated with extortion:
When your computer is infected by ransomware and cybercriminals demand a ransom to provide you access of your data or for instance, cybercriminal demand you extort money from your business in exchange of your vital data then you can opt for cyber insurance. It can cover the good number of ransom value and help the victims to get it through from the downtime.
When You Need Cyber Insurance?
To find out when you need cyber insurance then read the following mentioned points.
- Advertises firm services/products via social media or websites.
- Electronically transferred documents.
- Keeping the sensitive and confidential business data and information such as secrets related to trade, usernames & passwords, tax documents, on your device network.
- Text messages, email and social media communications with third party and clients.
- When you keep third-party on your device network which contains confidential and private data like income documents, credit & debit card info, social security no, tax information, etc.
What Is the Difference Between Cyber Insurance and Business Insurance?
Some of the people whose are running their businesses must be relying on business insurance and must be confused between cyber insurance and business insurance. The major difference in cyber insurance is that it offers the covers with damages and risks that caused by data breach which business insurance doesn’t offer. Moreover, the business insurance policies contain a certain electronic data exclusion. The electronically shared data doesn’t fall in the property damage category under a commercial policy.
Things to Keep in Mind While Sign in For Cyber Insurance
As cyber insurance has its own kind of terms, conditions and policy exclusions, terms, and conditions. So, there are certain things that you need to keep in mind while signing in for cyber insurance.
- Know about your deductibles or coverage limits
- Have the complete knowledge of specific risks that are covered by your insurance.
- Beware of the risks and damages that are not considered under your cyber insurance.
- You should know if the insurer detects security risks and offer other options to reduce or remove the risks
- You need to know about all security controls your business can adopt which could reduce the premium
- You should whether the insurer need your company to undertake a security risk review
The Bottom Line:
As cybercriminals keep looking for an easy target and these attacks are growing in numbers with each passing day so looking forward to cyber insurance is a great way to be ready in case any uncertainty hit your or your business. With cyber insurance, you can not only prevent your vulnerability but also get helping hand to face losses and damages of a data breach.