What is cyber insurance?
As the name implies, cyber insurance is simply an insurance product that provides coverage in case of a cyberattack or other breach. These types of events are usually excluded from your general liability coverage.
Why is cyber insurance important?
Cyber incidences and data breaches are becoming more and more common and are very costly.
The average cost of business downtime is $1,467 per minute
60% of small businesses suffering a cyberattack go out of business within 6 months of the attack
Small and mid-size businesses spend an average of $955,429 to restore normal business operations after a successful attack
These incidences can also cost you your reputation, not to mention the risk they create for your customers/vendors/etc whose data may have been exposed.
Cyber insurance offers multiple benefits
While no one likes the cost of insurance, if you’re one of the many and unlucky to incur an incident, cyber insurance can be invaluable in terms of its benefits. Below are our top 7 benefits of having cyber insurance.
It’s important to note that the specific coverage and benefits of cyber insurance policies can vary between providers and policies. Carefully review and understand the terms, conditions, and exclusions of any insurance policy before making a purchase.
Cyber insurance offers financial protection
Cyber insurance helps mitigate the financial impact of cyber incidents. It covers various costs associated with data breaches, cyberattacks, and other cyber-related incidents.
This can include expenses for forensic investigations, legal fees, data recovery, notification and credit monitoring services for affected individuals, and potential regulatory fines.
Cyber insurance can mitigate downtime losses
Many cyber insurance policies provide coverage for business interruption losses resulting from a cyber incident.
This means that if your business experiences a cyberattack or a data breach that disrupts your operations, the policy can help cover the financial losses incurred during the downtime.
Cyber insurance offers data breach response experts
Cyber insurance policies often offer access to a network of professionals experienced in handling data breaches.
These experts can guide you through the process of managing and responding to a cyber incident effectively. They can assist with breach investigation, containment and remediation.
A data breach or cyber incident can significantly impact an organization’s reputation. Cyber insurance may also cover public relations and crisis management expenses, helping you restore your brand’s reputation and rebuild customer trust.
Cyber insurance provide legal support
Cyber insurance can provide legal support in case of lawsuits resulting from a cyber incident.
This includes coverage for legal fees, settlements, or judgments arising from claims related to privacy breaches, intellectual property infringement, defamation, or failure to protect sensitive data.
Cyber insurance mitigate risk and prevent breaches
Many cyber insurance providers offer risk assessment services to identify vulnerabilities and potential areas of improvement within your organization’s cybersecurity practices.
This can help you enhance your security posture and reduce the likelihood of future cyber incidents.
Cyber insurance assist with compliance requirements
Cyber insurance policies may assist organizations in meeting regulatory requirements by covering the costs associated with legal and regulatory obligations resulting from a cyber incident.
This is particularly relevant in industries subject to data protection and privacy regulations like GDPR or HIPAA.
Cyber insurance offer third-party liability coverage
Cyber insurance often includes coverage for liability claims arising from third parties affected by a cyber incident.
This can encompass claims related to privacy breaches, network security failures, or the transmission of malware to external entities.
Compu-Gen Technologies offers smart cyberprotection solutions
Compu-Gen Technologies offers an entire suite of services designed to help you plan for, mitigate and respond to cybersecurity incidents.
And, we offer an entire suite of solutions to create a holistic system for you including managed IT support, video and other security systems, point of sale systems and merchant services.