Top 5 Benefits of Cyber Insurance for Your Business
Almost 4000 cyber-attacks occur every day worldwide. Every 14 seconds, a company is affected by an attack. As a business, if this doesn’t scare you, we don’t know what will. Cyber-attacks hit businesses worldwide; it’s not about if anymore, it’s more about when.
Companies have a duty to protect their business, clients and customer’s data. Thankfully, even when hit by a cyber-attack, there is a risk management product that can help recover and provide hope. The product is cyber insurance, a policy that helps businesses deal with cyber-attacks and subsequent losses.
You need cyber insurance if your company uses the internet or online networks. The cybersecurity policy is more than financial coverage and has many more benefits to companies. Hence, the article will highlight the top 5 benefits of cyber insurance for your company.
What is Cyber Insurance?
Cyber insurance, or cybersecurity insurance, covers most of the costs and losses related to cyber-attacks. The insurance will cover costs such as cyber experts’ services, threat elimination, data recovery, informing third parties and financial loss.
Each cover provides specific benefits that help businesses deal with and recover from cyber-attacks. The benefits are why cyber insurance is important and what every business gains by purchasing the policy.
Top Benefits of Cyber Insurance
Expert Advice & Support
The first thing a business must do when they believe they have become a cyberattack victim is to call the cyber insurance company. When you purchase cyber insurance, most policies provide a 24/7 hotline to advise and assist your business professionally.
The insurance will connect your company to cyber experts who can provide crisis management advice, forensic investigative support, third-party communication and advice to prevent future attacks.
Expert cyber advice and support are essential benefits that help a company understand what is happening and how to recover successfully. Cyber-attacks are dangerous, and dealing with them without expertise can worsen them; hence, it is always better to have expert help.
A benefit that convinces businesses to purchase cyber insurance is the financial protection. The insurance will cover a large number of costs related to a cyber-attack.
The insurance will cover the costs of the professional services (advice), extortion liability (ransomware), system repair and, importantly, business interruption financial loss. If a business does not have cybersecurity insurance, it would have to pay the costs and lose itself; some businesses may be unable to afford it.
The monetary benefit of cyber insurance helps cover the cost of recovery and the loss. Businesses can invest the saved costs back into the business and possibly improve cyber security measures. However, this is not the top benefit due to how important it is to have the above expert advice.
Data Breach Cover
Typically, cybercriminals attack companies due to their data. The encrypted data is stolen, sold or held for ransom. It is one of the worst outcomes of a cyber attack and can leave a company helpless.
However, in some cases, professionals can recover a portion or all of the data. Cyber insurance will connect your business with experts who will help investigate, recover data and remove malicious code from the network. The data breach cover is crucial to avoid paying the ransom and reduce the chance of the data being stolen and sold.
Data recovery is exceptionally costly, but companies don’t have to worry about the costs with cyber insurance. A company just needs to pray that the professionals can retrieve data, as not all vital data may be reclaimed. The benefit protects the business liability and customers’/clients’ information.
When a company faces a cyber-attack, it must declare it to its customers and clients. As the notice spreads, it creates a negative reputation and can ruin a company’s future. It is a devastating situation, and companies will be required to invest considerably to recover their reputation.
Thankfully, cyber insurance protects a business’s reputation, as it will cover public relations activities regarding the cyber-attack. Reputation coverage is a crucial benefit, especially for companies that depend on clients’ and customers’ trust.
Additionally, a client or customer may also sue a company if the cybercriminal has stolen and sold data. Even if it is not the firm’s fault, they will be liable for the data breach damage to third party’s data. Once again, cyber insurance will protect the company’s reputation by covering the legal costs to defend its case. With cyber insurance, a company can rebuild its reputation without spending a considerable amount.
Ideal Cybersecurity Strategy
Cyber insurance will not cover a business if it does not have suitable cyber security beforehand. The policy is the perfect addition to an existing cybersecurity frame, as it will act as the final line of defence.
A business can operate daily knowing they are covered even when things go wrong. An organisation understands that the policy will reduce the severe damage of any cyber attack, and even after being attacked, a company will recover to their normal activities.
The insurance can also help companies improve their cyber security and provide cybersecurity awareness material. It is the ideal risk management strategy to promote to clients and customers, so they understand you care for their data.
The insurance may not avoid cyber-attacks, but the policy will help companies deal with the outcome of the attack and help them return to normal.