You probably have insurance for your car, home, even life insurance. What you probably don’t have is cyber security insurance. We insure most of our tangible assets against possible loss, but most people don’t insure against data loss. As cyber criminals continue to get smarter, it’s no wonder that many businesses and individuals are buying cyber security insurance to protect from loss after a data breach.
What Does Cyber Insurance Cover?
Most people don’t have cyber insurance, because they don’t picture themselves as a possible victim. Cyber security is also widely misunderstood, but the cost of a breach can be in the millions, especially for a business.
Every provider offers different types of coverage and contracts, so always discuss it thoroughly before you decide. Cyber insurance covers an individual in case of identity theft or personal data theft. For a business, the coverage is much more effective. Businesses that have the right cyber insurance can get help with data breach lawsuits, fines and fees, and even coverage should the business lose productivity due to downtime.
Just like other types of insurance, cyber insurance is meant to cover the recipient in case of monetary damage due to theft. For businesses, coverage can go beyond basic protection and help mitigate underlying costs associated with a breach. Cyber insurance helps with incident response, prevention and third-party reviews of regulatory guidelines. They can help you get a business up to speed with the right cyber security and resources that follow regulatory guidelines.
Factors to Consider
You can use this guide to figure out factors pertaining to you business, but every businesses has its own risks and standards. For instance, do you have a CISO? A security expert will help reduce the chance of risks associated with a data breach. These small details determine your cost to insure a business.
The size of your business and the type of data you store are also factors. You should be compliant with any regulatory standards to avoid high premiums. You should also have a disaster recovery plan on-hand and procedures that handle incident responses. The security standards you have in place now will reduce your premiums.
You can lower your premiums even more with the right monitoring and anti-malware defenses. The better your defenses, the lower your risk of a data breach either from an outside attacker or insider threats.