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Here’s What to Know About Cyber Insurance

Here’s What to Know About Cyber Insurance

January 16, 2023

Whether you like it or not, organizations are going to get hacked. It’s the cruel truth. There are just so many individuals and organizations looking to gain unauthorized access and siphon off data and money from businesses, that it is basically impossible to go long stretches of time to not have to confront it in some way. With the threat landscape what it is, companies now offer cyber insurance. Let’s take a quick look at cyber insurance and what you need to know about it.

What Does Cyber Insurance Cover?

Not so surprisingly, insurance companies have created a lot of useful products that can help you mitigate potential damages to your business from cyberattacks. Let’s take a look at some of the coverage options available:

First-Party Coverage: Direct Losses

The expenses from a security breach aren’t just calculated in money stolen. They include the cost of business downtime, data recovery, and any fees associated with the investigation of the breach itself. 

Third-Party Coverage: Your Clients and Business Partners

If your security breach negatively affects crucial third-party data, you can get coverage that protects your vendors and your clients from the corruption brought on by a data breach. Besides that, cyber insurance can cover issues that happen to your actual infrastructure that holds the hard data, although you'll want to check with your broker about the exact language on your policy to ensure you aren’t left holding the bag.

What Should You Know In Order to Get Covered?

If you think that cyber insurance is right for your needs, you should consider the following questions:

What type of cyber insurance coverage will your business actually need? Every security breach that you deal with could be the big one. Of course, there are costs associated with every security problem, but there can be some pretty exorbitant costs associated with security breaches. Depending on the size of your business, the amount you depend on technology, and how much you have to spend for cyber insurance you could get coverage that will cover a lot or a little. 

How much are you willing to invest in cyber insurance? Obviously, this is contingent on several factors. How much does your business depend on its technology? How much technology does your business actually use? How valuable is your data? Speaking to one of our consultants can give you a list of questions you need to consider.

Does your provider cover all risks you expect to face? If you know about insurance companies, you know that it is all in the language. You will have to have a solid foundation with your broker before investing large swaths of capital in cyber insurance. A security breach can be quite the expensive endeavor with a lot of moving parts, and you will need a partner to help you through that. You’ll definitely want to make sure that the services you want and need from your cyber insurance policy are covered.

Give our consultants a call at (571) 470-5594 to help you get an idea what type of cyber insurance coverage your business could use.

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