With Cyber attacks growing daily at a rapid rate, Cyber Insurance is becoming necessary from small to large businesses. Is Cyber Insurance worth it? Definitely Yes, it comes with many benefits and is very important for an organisation to have a comprehensive insurance policy in place. Learn More.
Cyber Security Insurance benefits USA 2021
In today’s world, when there are so many cyber events all the time, it is very important for an organization to have a comprehensive insurance policy in place.
Many of these cyber attacks include misuse of computers, viruses, spam, and many other malicious software programs. In Cyber Security Insurance program that provides great prospects to the middle market, we find that Online Security is an area where many clients are looking to purchase some coverage.
While cyber insurance is an increasing problem today, it has been around for quite some time, from the 1960s through to today.
Originally, insurance companies provided auto and liability coverage, so anything from driving a car on the road to computer misuse is covered under this category. Insurers are realizing it is crucial to provide all this coverage today, because the businesses of the future may not even have an office.
Why should you have Cyber Insurance
The world is changing right before our eyes. We live in the most wired-era today in history. We are able to conduct our business virtually and share business cards over emails.
Companies are still forming formal offices to begin business processes. Being located in a modern workplace is becoming less of a standard, as the world is becoming a more connected world.
And this connected world is becoming more and more mobile. Henceforth more information is stored on the cloud than it used to in 90s. Even encrypted data while transferring is vulnerable to be leaked.
Companies are becoming more technical, and the employees need to have more expertise in these new technologies.
Even if you are not a company, there are many Cyber insurance policies and plans for individuals too. If you are asking, Is Cyber Insurance worth it? Our answer is always yes, even if you have just started with a small scale business.
Types of Cyber Insurance and its Benefits
We are now going to take a look at some types of Cyber Insurance to help you determine the best insurance policy for your particular businesses or an independent insurance broker’s clients.
For an insurance broker, if you choose to cover cyber insurance then this could provide an option to help your business avoid risk and lower its expenses
One of the major Cyber Insurance benefits is that the company provides comprehensive first hand coverage and protection for various use cases like Data loss, IT Infrastructure damages, risks related to information privacy, information governance liability etc.
Also Read: Top 10 Cyber Security Threats in 2021
Cyber Insurance Coverage Checklist
The form most insurance companies use for cyber insurance is “professional liability”. In this type of coverage, the insured company would have to ensure that they are able to honor their obligations to the clients.
Cyber insurance can be just as expensive to obtain as other forms of insurance like home or life insurance.
Coverage forms should be reviewed and analyzed very closely to be sure there are no gaps in the coverages provided.
Professional liability insurance policies can usually be purchased as a whole group or as an individual company. There are multiple companies that offer cyber insurance plans in the United States.
Always Read the features provided on the particular cyber insurance policy so you can decide if it is right for your business or not.
In most of the cases, Loss of value due to theft of your intellectual property is not covered under cyber insurance policies. Also, If there has been a major security event, then the additional costs to upgrade the server, security systems etc are to be covered by the business itself.
Yes, Definitely. It comes with lots of benefits in this un-secure technological world.
There are many. Some of them are Phishing Scams, Ransomware, Spoofing, Ransomware, Identity theft etc. Read more about them here.
Conclusion – Is Cyber Security Insurance worth it?
Cyber security insurance can be a valuable option if your business needs insurance and it does not have an existing policy. Cyber insurance can be expensive to get, and you are likely to pay an insurance company a bit more than you would for typical property insurance. But they are definitely worth it with a lots of benefits.
There are various programs of cyber insurance which saves the clients money on insurance premiums, and helps them to recover faster when they are the victim of cyber-related crimes.
The need of cyber insurance is only going to increase in the coming decade. With daily growing attacks and data breaches, it is important for you and your business to stay safe.