To protect against the risk of cybercrime, many businesses add cyber insurance to their business insurance policies. So, what exactly is cyber insurance and why is it important for your business? Cyber insurance covers your business? liability for a data breach that involves sensitive customer information. According to Nationwide, besides legal fees and expenses, cyber insurance typically helps cover the costs associated with notifying customers about a data breach, recovering compromised data, repairing damaged computer systems, and restoring personal identities of affected customers.
Here?s a bit more about the state of cyber insurance in 2023:
- In 2020, the global cyber insurance market was worth $7.8 billion. (org)
- Forecasts suggest that by 2025, the cyber insurance industry will grow to $20 billion. (org)
- A 2022 survey indicated that only 19% of organizations claimed to have coverage for cyber events beyond $600,000. (Network Assured)
- The same study showed that only 55% of organizations claimed to have any cybersecurity insurance at all. (Network Assured)
The benefits of cyber insurance are numerous, but these are some of the top ones: coverage for data breaches, reimbursement for business loss, defense against cyber extortion, forensic investigative support, and notification requirements.
- Coverage for Data Breaches: Cyber attacks can be both devastating and dangerous. Cyber insurance can offer coverage for data breaches, including the costs of litigation, recovery, and identity theft.
- Reimbursement for Business Loss: On top of compromising sensitive information, attacks can often interrupt business and cause lost revenue. Policies can insulate a company from these costs and provide reimbursement for any income that was lost due to a cyber-attack
- Defense Against Cyber Extortion: Malware infections have seen a sharp rise in popularity in recent years. Cyber insurance provides effective defense against these type of attacks by allowing businesses to recoup associated costs of cyber extortion.
- Forensic Investigative Support: After a cyber-attack, it?s imperative that a business rectify the problem and implement strategies so that it doesn?t happen again. Any policy should reimburse costs associated with a forensic investigation of the attack and/or additional investigative support.
- Notification Requirements: Mandated by law, the costs of notification can add up, averaging $1.72 million according to one survey. Access to a law firm to serve as counsel and an incident breach response vendor to handle notifications is crucial.
Cybersecurity needs to be a priority. As Ginni Rometty, IBM?s CEO, notes, ?Cybercrime is the greatest threat to every company in the world.? With Info Advantage?s Managed IT services, you get full access to professional support, goal-oriented solutions, and downtime-preventing maintenance; allowing us to serve as a resource for businesses who need support for their information technology, as well as a consultant who can assist them in managing it.
Learn more about how an IT partner like Info Advantage can help make sure you have the right security tools and strategies in place to be eligible for Cyber Insurance, contact us today!