Cyber Insurance: Everything You Need To Know

“Mitigate the Potential Losses in the case of breaches with Cyber Insurance”

More and more growing companies are looking for Cyber Insurance to stay protected from ransomware attacks. With the world becoming more advanced, cyber attacks are becoming more serious.

Due to the rapidly increasing ransomware attacks, more businesses from small companies to big brands are purchasing cyber insurance plans to help mitigate potential losses in the event of a breach.

We have arranged a podcast with Jim Rutt to discuss Cyber Insurance who is the CIO of The Dana Foundation.

Cybersecurity Insurance coverage is important to protect companies against the risk of cyber events, including those associated with terrorism. Cyber-risk coverage can assist in the timely remediation of cyber attacks and incidents. Any kind of loss, compromise, or theft can hurt a business for e.g. loss of electronic data, loss of customers, and revenue. Businesses may be liable for damages that come from the theft of third-party data.

According to a recent report, 60% of the businesses were victims of ransomware attacks last year. The downtime before recovery was also 2x over the last year.

This blog is all about Cyber Insurance, who needs it, when will you need it and how to choose the right cyber insurance.

So, let’s get started!

Who Needs Cyber Insurance?

Organizations that create, store and manage electronic data online, for example, customer contacts, customer sales, as well as credit card numbers must have cyber insurance to protect their sensitive data. Apart from this, e-commerce businesses must have cyber insurance as downtime related to cyber incidents can cause a loss in sales and customers. Also, any organization that stores its customer information on a website can have the liability coverage that cyber insurance policies provide.

What does Cyber Insurance cover?

“Evolve Protection against Evolving Threats”

A wide range of cyber risk losses that may unexpectedly arise from cyberattacks is covered mostly by cyber insurance plans. Apart from this, few of the plans can even offer coverage for physical damage to hardware or coverage for business revenue loss. Depending on your present business security requirements, plans can be personalized.

When Do You Need Cybersecurity Insurance?

When you have a lot of your sensitive data stored online. At that moment it becomes important for the business to have cyber insurance coverage under the risk management.

Security/data breaches affect tons of records a year and reports of breaches continue to rise at a dramatic rate. The commencement of viruses and unauthorized access are the most common examples. Hence, to keep your business data important at this period you need Cyber Insurance.

Benefits of Cyber Insurance

Both the insurer and the insured enjoy and experience the benefits of cybersecurity insurance. The insurers remain in touch and informed about the risks they have committed to cover. This helps them become aware of the cyber exposures policyholder had faced and directly cater to their risk aggregation modeling.

This information gets passed on to the insured. Now they will get updated risk insights generated out of the continuous assessment process.

Any kind of regulated data like personal or protected data is breached and understanding how to. You know what bodies to engage or what firms you can engage with the proceeds from some cyber insurance like that.

Mitigate Potential Loss

Cyber Insurance helps you to mitigate the loss when any uncertainty even occurs. This will include various data breach costs, particularly as they relate to security fixes, identity theft protection for those impacted by the breach, and protection from possible legal action.

Coverage under the Individual Cyber Safe policy

Cyber insurance protects you from various potential threats for example identity theft, social media liability, cyberstalking, malware attack, IT theft loss, phishing, email spoofing, media liability, cyber extortion, and privacy and data breach by the third party, all in one cost-effective cover.

Financial Costs Coverage

When you buy cyber insurance, you will get benefits like covering defense cost, prosecution cost, and other minor expenses in case you become the victim of a cyber-attack

IT Consultant Services Cover

Cybersecurity insurance includes the IT Consultant costs incurred by you to prove the amount and the extent of a covered loss.

Legal support

In the wake of a cyber incident, businesses often seek legal assistance. This assistance can be costly. Cyber liability insurance can help businesses afford proper legal work following a cyber attack.

How To Choose The Right Cyber Insurance Partner?

Consider the following tips before choosing the Cybersecurity Insurance Partner:

Find a policy lineup with your company’s unique risk exposures:

Cyber threats are growing at a constant rate, assessing cyber risk at a time of a year is no longer enough and the underwriting process must account for this rapid change of risk covered.

You must find a policy that is aligned with your organization’s risk exposures. Insurers must provide coverage that fulfills all the quickly evolving risks all organizations regardless of their sizes face today and will continue to face in the future. A cyber insurer must have an idea regarding the threats policyholders face and share the information with the insured. Now both sides can be secure in knowing the policy covers the relevant risk exposures.

Look for a partner that utilizes dynamic, online insurance applications:

Conventional insurers who sell cyber policies have been known to require different applications for different aspects of cyber threats. They require a unique application for each of the risk exposures a business faces. But, nowadays insurers only require a single application that covers all risk exposures. This will make the whole process simple and quick and get the application process off to a less confusing start.

Seek out an insurer who does more than help you get back up and running again:

Even if a business owner can resume normal operations for the business, they will likely have to deal with regulatory fines, penalties, lawsuits from vendors and clients, and reputation issues for months, if not years after the incident. Make sure your prospective policy covers all of this.

Wrapping Up

Without a cyber insurance policy, ransomware attacks from beginning to end can easily cost up to 7 figures or even more than that for medium or large size organizations. So, to keep your business’s sensitive data secured and to mitigate your potential loss, you have to purchase a cybersecurity insurance policy.

Watch our full podcast with Jim Rutt, where we dive deep into Cyber Insurance, why you need a Cyber Insurance Policy, and much more.

Have any doubts or want to have a call with us to know more about Cyber Insurance?

Get in touch with us soon by clicking here, Sennovate’s Experts will explain everything on call in detail.

You can also mail us at [email protected] or call us on (925) 918-6618.

About Sennovate

Sennovate delivers custom identity and access management solutions and SOC solutions to businesses around the world. With global partners and a library of 2000+ integrations, we implement world-class cybersecurity solutions that save your company time and money. We offer a seamless experience with integration across all cloud applications, and a single price for product, implementation, and support. Have questions? The consultation is always free. Email [email protected] or call us at: +1 (925) 918-6618