Better Understanding Cyber Insurance
Given the number of cyberattacks is on the rise, it is surprising more businesses haven’t purchased cyber insurance. Cyber insurance is a specialty insurance product designed to help protect your business against losses resulting from a cyberattack. This type of risk is typically excluded from traditional commercial general liability policies or are not properly defined in traditional insurance products, so coverage is not adequate.
If your business stores important data such as phone numbers, credit card numbers or Social Security numbers, either online or on a computer, you are at risk of a cyberattack and could benefit from cybersecurity insurance.
If your business is considering cyber insurance, you should discuss with your insurance agency what policy best fits your company’s needs; first-party coverage, third-party coverage, or both.
What should your cyber insurance policy cover?
- Data breaches
- Cyberattacks on your data held by partners and other third-party vendors
- Cyberattack on your network
- Global cyberattacks
- Terrorist acts
What else should you expect from your cyber insurance provider?
- Provide defense in a lawsuit or regulatory investigation
- Provide gap coverage
- Offer 24-7 phone support
Without sufficient coverage, many businesses might not be able to bounce back after a cyber incident. While the premiums on these policies can be significant, it gives a business a fighting chance, a chance they would most likely not have after a cyberattack.
Cyber insurance DOES NOT REPLACE the need for cybersecurity. It can help minimize the financial impact but does not protect your company against cyberattacks. To ensure you have proper cybersecurity measures in place, give us a call. 2W Tech is a technology service provider specializing in solutions for the manufacturing industry.