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What should know about Cyber Security Insurance ? | Briskinfosec
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What should know about Cyber Security Insurance ?

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 not covered in Cybersecurity Insurance?
  • Conclusion

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 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, accomplishing further loss in businesses.

  • When European Union’s General Data Protection Regulation (GDPR) are 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 not covered 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:

  • When it comes to Cyber insurance policy, it won’t come with copyright, software and patent violation.

  • Cyber policies won’t cover the cyberattacks and invasion.

  • 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, then organization has to follow the security measures.

  • If Governmental authority or public authority made any move or order, then it may be denied.

  • If organisation lost data due to technical or network interruptions, then it may be excluded in the lis

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, 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.

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