Is Cyber Insurance Worth It?

Today’s fast-paced tech world is showing how vulnerable companies and individuals are to cybercrime and hacking. Every time the major software companies close known vulnerabilities hackers and cybercriminals find new issues to exploit. Plus, no amount of software can effectively protect against phishing schemes. Cyber insurance is a way to cope up with this.

Cyber insurance is a way to protect your business from the costs of an attack. This insurance policy pays out if your business is a victim of a cyber attack, giving you the resources to repair your data and recover from the financial costs.

Cyber Insurance

But is it worth it? Yes, but the reasons get a little more complicated.

The Cost Of Cyber Breaches

Unfortunately, cyber breaches tend to be hugely expensive, even when it’s relatively easy to recover. The average cost of a breach for businesses is over 8 million dollars in the U.S.

The cost is lower for small businesses, in part because attacks against small businesses are usually less sophisticated.

No matter what size your business is you need to consider a wide range of costs. Not only do you have the cost of the original cleanup and recovering any lost data, but most businesses also see a loss in profitability in the months after an attack. Consumers are less likely to work with a business that has suffered a cyber security attack… even if that business did everything right.

This is where it comes in. A good insurance policy gives you the funds you need to let your business recover.

Benefits Of Cyber Insurance

A lot of people know that cyber insurance is available but don’t know what it offers their businesses. Here are some of the most common benefits that come with it:

Business Interruption Loss Reimbursement:

If your business is unable to operate for a time after a cyber attack this benefit will pay out for the lost funds because of that interruption.

Cyber Extortion Defense:

If your business is targeted by ransomware or other kinds of cyber extortion this benefit pays out to help you recoup the costs of the attack.

Legal Support:

A lot of businesses don’t know that they are potentially liable for data confidentiality breaches as the result of a cyber-attack, especially if the attack was preventable. Its policies also help businesses get legal representation if they are taken to court over a data breach or cyber-attack.

Forensic Support:

Many cyber insurance companies also provide forensic support to help businesses determine how extensive a security breach is and to help isolate the breach and make it easier to contain and handle after the fact.

Who Should Have Cyber Insurance?

Most businesses should probably have cyber insurance of some kind, but there are a few things that make it more necessary.

If you’re not sure if you need it, here are some things to ask:

  • Do you communicate online for normal business interactions?
  • Do you have an online store or allow credit cards?
  • Do you transfer important business documents online?
  • Do you have digital records that contain personal information for employees or customers?

If the answer to any of those questions was yet, it might be time to get cyber insurance. If you want the one, Contact Economic Computers today!

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