Every business that stores its important data online or in a physical hardware could benefit from having a cyber insurance. When we say important data, we mean financial information, personal information, confidential customer data and so on. Based on how much sensitive data your company works with and the nature of the confidential information, your enterprise will need different levels of insurance covers. For instance,industries like Finance, Healthcare and the Legal sector keep big databases with social security numbers, clinical records, credit card information and others, which are at a higher risk of becoming stolen and exploited by cyber criminals.
What risk factors show that you need cyber insurance?
Cyber insurance is worth getting when you store store confidential information online or when you have a big customer base, which could potentially become subject to data breach. There are different legal and services costs associated with protecting your company’s interests, following a breach incident with customer data. Companies that generate high revenue and keep valuable information online are also at risk of ransomware, phishing and other cyber attack that treatens the whole company and the wider financial assets.
What does it not cover?
There are certain type of damage that cyber insurance does don’t cover. One example is property damages, which usually means hardware, or other physical property, damaged after a cyberattack. These insurance covers also exclude loss of Intellectual property, business that are charged with causing a self-inflicted incident. If a company wants to take some protective measures and strengthen the cyber security, it will also not be compensated by the cover for these security measures. There are different coverages that you can choose to make sure that your business is up and running with the support of IT experts and legal advisors during and after a cybercrime incident. Based on the type of damage your company is liable to, you can choose one or more insurance policies that protects both the company and customer data following data misuse.
How do you know what insurance you need for your business?
A lot of companies that keep smaller databases and less valuable information online often undermine the importance of cyber security and the dangers of cyber crime in the digital workspace everywhere in the world. Even though your company may be in the low risk category and require a basic assistance cover, you almost always need to consider one or more policies, that meet your cyber security needs as a business. Cyber insurance experts, offering you different covers, would be able to answer all of your question and give you a assessment that considers all the risk factors and the financial damage you may become subjected to as a business in a worst and best case scenario.
Which industries benefit the most from cyber insurance?
Some sectors like Finance, Accounting and Healthcare are at higher risk of cyber crime due to the nature and the amount of proprietary information stored online or in company servers. In By 2020 in the US, over 50% of the healthcare organizations and over 32% of the institutions in the education sector are protected by cyber insurance. This shows that there is a higher demand for cyber protection services and covers when the company is dealing with third-party data, considered at higher risk of breach and theft. On the contrary, Industries like manufacturing, media, and retail are some of the most uninsured sectors to this day, even though more and more businesses in these sectors consider a comprehensive cover, after moving their operations partly or fully remotely.
Which way should you go next?
If you are not sure whether your business may suffer the risks of unprotected customer data and IT infrastructure, you are better off to request a quote that addresses your concerns. A consultation by a cyber security expert will point you in the right direction and give you a better understanding of the risks in your sector, along with the best policy to satisfy your cyber security needs.
To find out more about our cyber insurance cover, click here or request a consultation with an we-IT expert!