What Is a Cyber Risk Insurance? Should You Get One?
Protecting your business from online attacks.
Online businesses rely heavily on the internet for its marketing, administrative work, processing of credit cards, managing the inventory, and distribution controls. Any disruption of the operation can lead to damages like discontentment of stakeholder, financial loses, good name and brand, and regulatory inspection. It only takes one cyber attack to wipe out your business.
To correct a breach has ballooned to over $6 million.
All online business is at a tremendous risk for data breach or commonly known as cyber attack. Just one good hacker, a lost paper record, a stolen laptop, or one virus can create such an enormous financial lost. It can also destroy your business reputation. The question now is, when will you be prepared if that should happen to you?
Presenting, the cyber risk coverage, a new product in the insurance business. Yes, there could be at least 50 insurance carriers that offers this, but the coverage is limited. The policies are called many names like “privacy,” “cyber risk,” “information security” and “media liability” coverage. This type of coverage frequently gives room for reflection of the terms of cyber policies as compared to other types of coverage.
Most cyber policies has a combination.
The customary liability coverage safeguards businesses against the third party claims, and the first party coverage, secures businesses from losses. There are important terms and conditions of this policy that can affect the coverage on hand. Businesses should realize not to hope and presume to secure all parts of the coverage. Know the dissimilarity in the policies that are being offered so you can maximize your budget.
For fair comparison of the policies available, know the special circumstances and limits.
- Know if the cyber insurance policies offered by the insurance policy companies has more than one types. The thing is, a coverage could just be an extension of an existing policy. If that is so, then get a stand-alone policy which is more comprehensive. Perhaps the policy can be adjusted to your business.
- Differentiate the deductions of the insurers.
- Is your cyber coverage and limits applies to first and third parties? Then ask if your service provider offers cyber insurance. Will that have an effect on your agreement?
- Does the policy covers attacks where the business falls as victim or only aimed attacks against a particular business or industry in particular?
- Does the policy also covers the non-malicious action of an employee which is part of the E&O coverage (errors and omissions, a form of a liability insurance) that is applicable to cyber insurance?
- Will it cover network and social engineering attacks?
- Does the policy has a time frame within which the coverage applies?
Get a cyber risk insurance or cyber liability insurance if you want your business to survive. Be cautious when doing transaction online. You should have a computer that is strictly used only for your business. Do not mix your personal files and your work. Do not wait for a cyber attack, always be prepared.