Cyber Insurance
Some Points to Consider While Buying Cyber Insurance
Technological developments have enabled business organizations and individuals use the Internet to conduct transactions and get connected to people. Businesses today use the web to find and get connected to prospective customers. Unlike those in the past, most activities, such as shopping, entertainment, banking, money transfers, education, and more are done online. This has exposed to a lot of risks in the form of cyber-attacks by hackers or criminals, which can cause much loss to businesses. With cyber insurance, you can protect your business from any heavy loss or damage.
Cyber Insurance | Image Resource : medium.com
Get to Know What is Cyber Insurance
Most businesses are prone to the Internet-based risks and with cyber insurance, you can protect your organization by reducing risk exposure by making up for the costs incurred with recovery due to the cyber security breach. As for the coverage, a cyber insurance policy should include:
- Business losses: Any loss incurred owing to negligence or any other reason and monetary losses due to loss of important data, network downtime, crisis management costs and business interruption will be covered by a cyber insurance plan.
- Legal expenses: This includes lawsuits and extortion expenses connected with the freeing of confidential information and other fines and expenses related to legal settlements, intellectual property, etc.
- Investigation charges:You need to hire the services of an investigation agency to find out what went wrong and how to repair, as well as prevent the security breach.
- Notification: Any expenses incurred due to notification of data breach to clients and customers is covered. By law, you are required to exercise credit monitoring for clients whose data is breached.
How to Choose a Suitable Cyber Insurance Plan?
There are innumerable insurance companies offering cyber insurance; it is however essential to compare the cyber insurance policy each offers and then choose the best one. Here are some points you need to consider.
1. You need to look for a comprehensive cyber insurance plan, which is a stand-alone policy and not an extended policy of an existing one.
2. Did you check the coverage? Does it include the third party, generally service providers?
3. Does the policy have errors and omissions coverage, in which case it covers an employee’s non-malicious actions?
4. Check for the deductibles and compare them with other insurers.
5. Does the policy cover any network attack to which your business falls victim to?
The information given above allows you choose the best cyber insurance that protects your business online.