Cyber Security Insurance: What It Is, And Why You Need It
We’ve previously covered the topic of Cyber Security and the Steps You Can Take to Safeguard Your Business From Cyber Threats, and as part of National Cyber Security Awareness Month, we’re continuing the trend with describing what Cyber Security Insurance is, and the importance of having the proper coverage.
What Is Cyber Security Insurance?
Insurance protection that covers the digital field can go by many names including:
• Cyber Endorsement;
• Cyber Insurance;
• Cyber Liability;
• Cyber Risk; and
• Cyber and Privacy Insurance.
There are many different types and combinations of coverage available, but all of these names cover the same key concept of protecting your business or organization from financial loss related to online data and network security.
Much like you would want Professional Liability Insurance to protect you from any professional errors during your duties, Cyber Security Insurance can protect you from internet-based risk, and damages from the result of breached security or release of protected information.
As more and more business processes are moving online, and more information is being processed over the web, cyber security will continue to be a growing concern, and Cyber Security Insurance can help alleviate the risk associated with your digital data.
Why Do I Need Cyber Insurance?
In the digital age, your business can be greatly reliant on internet networks, or heavily involve processing private data between your partners, employees, and clients.
This reliance opens businesses up to outside threats from hackers. And it isn’t just large businesses that can be affected; 20% of all cyber-attacks hit small businesses with 250 or fewer employees. Approximately 60% of small businesses close within 6 months of a cyber-attack.
If in the unfortunate even that your systems or security measures fail, and your organization is liable for major losses, cyber security insurance can provide a safety-net of funding to facilitate a smooth recovery, and return to normal operations.
A loss of data can cause a company to breach its obligations under privacy and data legislation, which can lead to regulatory repercussions including fines, or can expose the business to the threat of legal action by the affected parties. Cyber Liability Coverage can be a great way to reduce the costs that can occur from a breach of your company’s data systems, by ensuring you are protected by Data Breach or Privacy Crisis Management Coverage.
There is also Network Security Coverage, which can cover a broad range of incidents. Network Security can include costs or losses associated with unauthorized access to your network, viruses, unauthorized transactions, and Denial of Service attacks (D.O.S. attacks).
How Can I Protect My Business?
Because technology is ever evolving, and new digital threats are constantly emerging there can never be an all-encompassing defense against hackers who might do your business harm.
The best way to protect your business from the risk incurred by breaches of security, hacking, or viruses is through a combination of digital security, and Cyber Security Insurance.
There are a number of different coverage options for Cyber Security Insurance, so we recommend speaking with a qualified insurance representative to go over what coverage is best for your business.
Contact your Ottawa insurance broker today to discuss coverage types, and allow us to craft a policy that ensures that your organization isn’t left scrambling in the event of a network security issue, or a data breach.