As businesses are now going digital, they also become susceptible to cyberattacks. Cyber attacks are a significant problem for all organisations, whether an established brand or a start-up company.
It is crucial to invest in cyber protection insurance to protect yourself against these events if they happen.
This article will talk about everything you need to know about cyber insurance policies and the factors you need to consider when getting one.
Understanding Cyber Liability Insurance
Cyber protection or cyber liability insurance protects organisations from the fallout caused by cyberattacks and hacking threats. These insurance policies minimise business disruption during a cyber incident and its aftermath.
Potentially these policies can cover the financial cost of dealing with the attack and recovering from it.
However, cyber insurance is not a substitute for a professional cyber security team. The company's cybersecurity is still a responsibility of the management and is not something that can be shifted to the insurer.
Typical inclusions in cyber insurance policies cover ransomware, fund-transfer fraud attacks, and business email compromise scams.
Who Can Benefit from Cyber Insurance?
Any business with an online component can benefit from cyber insurance. As most organisations now rely on technology to conduct their operations, this means every business that sends or stores data electronically should get some form of cyber insurance.
Cybercriminals can attempt and break into your network to steal data such as contact details of your customers and staff, intellectual property of your company, and sensitive financial data of your business.
Hackers may also cripple your network through ransomware. Cyber insurance policies that cover ransomware can significantly help organisations that fall victim to these attacks.
How Much Do These Cost?
The cost of your cyber insurance policy will depend on the size of your business, your annual revenue, and other factors, such as the type of data you deal with.
Your existing cybersecurity and history of cyber-attacks can also be factors for this cost. A history of poor cybersecurity and data breaches can mean you would be charged more for your coverage.
Cyber Insurance Coverage
It is essential to understand what is covered and isn't in your cyber insurance policy. There may be assets that are important to your organisation but are not covered by cyber protection policies.
An example is the financial damage and reputation costs caused by a loss of intellectual property. It is essential to take extra measures to make sure these assets are protected and properly managed.
Consulting an insurance specialist can help you determine if your cyber insurance coverage covers the essentials you need.
Applying for Cyber Insurance
As mentioned earlier, a cyber insurance policy is not a substitute for a cyber security team. To get a good deal for coverage, you will need to prove that your business is responsible for cyber security in the first place.
Your application is likely to be accepted if you are vulnerable to a data breach.
Conclusion
Cyber-attacks are a severe problem in the digital age, where every business is dependent on technology to run their operations and store data. Other than disrupting your business operations, these attacks can cost you ransom, fees, and damages.
While cyber insurance is not a substitute for cybersecurity measures, it can help protect you from fallout in the event that you do get a cyber-attack.
Are you looking for reliable cyber protection insurance on the Gold Coast? We at New Wave Insurance can help you find the cyber insurance policies that suit your needs. Book a free 15-minute consultation with us today!