Introduction:
Cyberattacks are happening everywhere, for individuals as well as to organisations. If data breach or any cyber incidents have happened, it will make an unforgettable impact on the company for a long period. Also, it extracts a lot of efforts to rebuild the trust as well as for recovering from financial losses. It’s impossible for organisations to avoid a security breach or cyberattack, as 100% security guarantee is never, anywhere. To avoid these breaches, organisations often follow different policies and approaches. One such efficient practice is having a “Cybersecurity Insurance” for your company.
Table of Content:
Cybersecurity Insurance
Why companies should get Cybersecurity Insurance?
What’s covered and what’s not in Cybersecurity Insurance?
Conclusion
How Briskinfosec helps you
Curious to read our case studies?
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Cybersecurity Insurance:
Cybersecurity insurance is an insurance policy that helps to protect organisations experiencing financial losses from various cyber incidents like data breaches, network damage, and business interruption. It is also referred as “Cyber Risk Insurance” or “Cyber Liability Insurance Coverage (CLIC).” Cyber insurance policies can help you to get back into your business by giving support on data recovery and business interruption. Cyber insurance may differ with another policy, and the coverage of the policy isn’t the same for all.
Why companies should get Cybersecurity Insurance:
- Protect your customers and client’s data so that they aren’t worried about cyberattacks or breaches.
- Data Breaches will cost you a lot. Instead of spending extravagantly on remediation, you can spend on cybersecurity insurance which is obviously lucrative.
- Data breaches are a part of the attack but your network and data surfaces may encounter different attacks like DOS (Denial-of-Service) and DDOS (Distributed Denial-of-Service) which will shut down/deface your services, generating further loss in businesses.
- With European Union’s General Data Protection Regulation (GDPR) in place now, a cybersecurity attack or breach will shatter even a financially strong company into dust, because of the gigantic fine fee.
- Don’t let your funders and investors to wither the confidence they had on you because of company breaches.
- Always have a backup money to fund the legal and fine cost for dealing with cyber incidents.
- 60% of small companies are terminating their business because of cyberattacks.
- According to a survey, cost of a cyberattack is between $200000$ to $600000, which is more than enough to wallop small organisations business.
- Don’t come in breaking news with negative headlines.
- If you have any Business Insurance Policies, never assume that you won’t need any other insurance. The reason is existing insurance policies may not cover entire cyber incidents.
What’s covered and what’s not in Cybersecurity Insurance?
Cyber insurance covers financial losses which occurs because of data breaches and other cyberattacks. When you buy a cybersecurity insurance, you need to know what is covered and what isn’t in cybersecurity insurance. Importantly, you need to verify whether it has a first-party and third-party coverage. First-party coverage mainly covers the financial loss and damages to the organization and third-party covers losses like customers data breaches including defence and liability. In general, let’s see what are all covered and what aren’t.
A standard cybersecurity insurance differs with first-party and third party based on their coverage as follows:
First Party Coverage:
- Legal fees
- Government or company fines
- Notification costs
- Reputation damage
- Cyber Extortion Losses
Third Party Coverage:
- Network Security Liability
- Network Privacy Liability
- Electronic Media Liability
- Errors and Omissions Liability
Following may not be covered in a Cyber Security Insurance:
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When it comes to Cyber insurance policy, it won’t come with copyright, software, and patent violation.
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Cyber policies won’t cover the cyberattacks and invasion.
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When it comes to ‘claims’ for a Cyber insurance policy, then the organization has to answer for various questions like, what are the security measures taken to secure data? If insurer finds that organization hasn’t implemented the security mechanisms, then the claim will be cancelled. But the main idea of a policy is to protect from unknown sources, so this won’t be applicable for all the policies. But if it’s so, organization has to follow the security measures.
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If Governmental authority or Public authority made any move or order, it may be denied.
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If organisation lost its data due to technical or network interruptions, it may be excluded in the list.
Conclusion:
Cybersecurity insurance is not the complete solution to protect against cyberattacks or data breaches. Even though with the prevalence of modern techs and security measures in reality, 100% security is still a fantasy. So a Cyber insurance policy helps to mitigate the impact of data breaches, thus enabling business continuity. So, before buying a Cyber insurance, create a risk profile for your organisation to know what kind of policy you need, what they are covering and what aren’t in their policy. Overall, Cyber insurance is a piece of barrier against data breaches.
How Briskinfosec helps you:
Briskinfosec provides assistance while reviewing your cyber insurance policies. We also have a humongous experience in auditing and in policies validation. While reviewing, we check out what policies suits you, based on your business. If that policy isn’t implemented, we will help you to implement it, flawlessly.
Curious to read our Case studies?
Our stakeholder, one of the leading commercial bank throughout the globe, offers financial solutions through regional branches, internet, and mobile. They wanted us to conduct a proactive cybersecurity audit and also to check their insurance policies. We successfully audited their policies and sorted out the flaws in it. Check our case studies to know more.
Last but not the least:
Don’t miss to read our Threatsploit Adversary Report. It’s our collection of global cyber breaches covering attacks that have happened on a monthly basis.