Cyber security insurance is a form of insurance that helps businesses in the event of a cyber-attack and data breach. It protects companies from financial losses, something which is not offered in other insurance covers or by commercial liability policies.
The different types of cyber incidents
Cyber security insurance is one way in which companies can protect themselves from cyber threats. Let’s look at the type of cyber-attacks that can happen:
Data breaches: This is when unauthorised people hack into your organisation’s system to steal important data
Denial of service attacks: This is where hackers prevent people from accessing your website or online service
Malware: This is a virus that damages or disables computers and their systems
Cybercrime: This is any illegal activity online or using a computer
Cyber terrorism: This is where terrorists use the internet to carry out online terrorism
Why do companies need insurance cover?
Cyber insurance is essential because of the ever-increasing risks associated with cyber-attacks. The loss of data and revenue can drastically impact a business and in addition, they could be fined for a data breach. Insurance protects businesses as it can cover the costs of repairs, loss of income, and cover legal fees.
What are the key policy considerations of cyber security insurance
Just like any other insurance, it is crucial to review policy documents so you can find the right one for your business. Key considerations include:
Limitations in policy coverage: It is imperative to understand what is and isn’t covered by your insurance
Policy deductibles: Some policies may include deductibles which need to be paid out firsthand
Policy exclusions: Ensure all risks are covered by the policy and nothing is missed out
Be prepared as a business for cyber risks
Whilst it’s important to have cyber insurance to minimise risks and financial damage, businesses can be proactive in stopping cyber-attacks in the first place. As they say, prevention is better than cure, and here are some top tips you can follow:
Add security measures such as strong passwords, encrypting data, installing firewalls, and antivirus software
Train your staff: Ensure they understand how to identify malicious emails and they’re aware of what to do when they receive one. Companies should have procedures in place where staff can report suspicious activity
Prevent and recover from the loss of information with regular backup of data
By acting on these guidelines, you can prevent a cyber-attack from taking place. Being proactive is the best defence in cyber security.
Protect your business with the right cyber security insurance. Learn more about cyber security here.
