Welcome to the First Column IT Tech Blog

HomeBlog
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.

Previous Post
April 28, 2025
Learn How Resilience is Reshaping the Cybersecurity Landscape
While the goal of cybersecurity is always to prevent threats from taking advantage of your infrastructure, this is becoming more and more challenging as time wears on and threats evolve to changes in cybersecurity discourse. A recent podcast episode from Illumio, “Trust & Resilience: The New Frontlines of Cybersecurity,” explores how trust has become a vulnerability that attackers exploit in new and creative ways. How can cybersecurity as an industry pivot in response to this trend?
April 25, 2025
Everything You Need to Know About Business Tech Updates
While technology is an important part of your business, it shouldn’t be distracting you from carrying out your company’s mission. Indeed, it can be difficult to stay up-to-date on the latest practices and solutions, and it can feel impossible to keep up. While you could adopt the “good enough” policy that many businesses settle for, we think you should take a different approach—one that will make you impossible to compete with if carried out appropriately.
April 23, 2025
Boost Your Business’ AI, Cloud, and Security
Are you constantly looking to improve your small business and stay ahead of the game? Let’s talk about some tech that can seriously boost how you operate: artificial intelligence (AI), cloud computing, and cybersecurity.

Have a project in mind?

Start with our free consultation for VA, DC and MD companies. We will provide a detailed proposal and firm quote based on your specific IT support needs. All at a predictable monthly cost per seat.
Free Consultation - Sign Up Here