You’ve heard of many different types of insurance packages, from life insurance to car and property insurance. You’ve probably invested in some of these already. However, have you considered looking into cybercrime insurance? With digitalization progressing at enormous rates, it is no longer possible to run a business or even live a life remote from digital technologies.
With that in mind, cybercrime insurance can help secure you financially in case of large security breaches and data losses. The price of recovering from a security attack can reach millions of dollars, depending on the organization and the level of damage. Without insurance, these costs would surely be difficult to cover.
What is Cyber Crime Insurance?
In essence, cybercrime insurance refers to a line of insurance products or packages that protect organizations from cybersecurity risks. Whether we’re talking about information privacy risks, infrastructure risks, or information management threats, cybercrime insurance should be able to cover it all. For example, if your organization has invested in a cybercrime insurance package in time, you won’t have to worry about the expenses that come along with recovering from security attacks.
Depending on your package, the insurance should cover a section or the entire sum of expenses tied to the security incident. There is also a similar type of insurance called commercial general liability insurance. These packages protect organizations from potential property damage, theft, and losses caused by natural disasters. However, this type of insurance does not cover cybercrime risk.
That is why you need a specialized type of insurance that limits the damage caused by cyber-attacks. Depending on how much you’re willing to pay for your insurance investment, you can choose packages that offer data recovery and business interruption recovery as well. When it comes to cybersecurity in general, we always advocate preparedness and a good response plan that can help you bring the damage to a minimum.
However, there are times when a breach is unavoidable - it is either too advanced for your security system or way too fast for you to even respond. These are the situations where you would feel relieved and glad that you bought cybercrime insurance in time. Otherwise, you’d be facing enormous losses and financial costs that could lead your organization to bankruptcy.
Better Be Safe than Sorry
One thing we always say is that it is much better to be safe than sorry. With that in mind, you should always think ahead and keep your network as secure as possible. However, even the most professionally protected networks can still suffer enormous losses. Without cyber insurance, the weight of those losses would be completely on your shoulders. Financial pressure at that level can easily lead developed organizations into bankruptcy.
When it comes to cybercrime, the entirety of an organization’s data is at risk, from critical payment information to employee and customer data that includes names, addresses, phone numbers, and even social security numbers. It’s no secret that cybercrime affects all types of data and all types of industries as well. It is also well-known that attack recovery is expensive.
With all of that said, we recommend you look into cybercrime insurance in time. Keep in mind that different types of packages cover different expenses. For example, you will come across first-party coverage and third-party liability coverage packages. The first-party coverage packages offer a lot more value but they are also more expensive. Take your time to research the pros and cons of each option before going any further with your investment.