Data breaches are an everyday occurrence. The stealing of information and exposure of sensitive data are common incidents in today’s society.
Not too long ago, government officials and business owners kept important information safe with a lock and key—that was enough to protect sensitive files and documents. However, in the digital age that we live in now, stealing information is easy when it’s not protected properly.
A data breach can do more than just expose private information; it can damage reputations, taint relationships with other businesses, and sometimes it can even have the power to put the entire business at risk of closing and losing everything.
These are some reasons cybersecurity insurance policies exist. They’re there to cover more than the damage—they’re there to protect livelihoods and create a shield strong enough to protect the most valuable information from thieves and hackers.
Cybersecurity insurance can offer business owners and individuals with the best tools for protection against cyber crimes, business interruptions, and cyber extortion along with the best ways to recover lost data.
Because cyber safety is a fairly recent addition to our day-to-day lives, choosing the best policy for your business can feel like a daunting task. With all the information available out there, it is impossible to make a quick decision.
Here’s all you need to know.
Before researching the best policies out there, it’s important to first understand what this type of insurance is and what most policies can offer their clients.
Essentially, cybersecurity insurance protects a business from online crimes and covers the costs to recover any data that was stolen or lost. Things like hacking and phishing attacks are covered under most cybersecurity policies, which are the most common types of liabilities a business faces.
It’s also important to note that cybersecurity insurance has the capability of enhancing security protocols that are already in place. Often, sensitive information is exposed by mistake, for example. Having a cybersecurity insurance policy can protect your business from that happening, whether intentionally or accidentally.
If you’re not familiar with cybersecurity insurance policies, it’s important to be on the lookout for certain things that should be covered under the policy you’re considering.
Though the benefits of these types of policies are many, there are some things that cybersecurity insurance will not cover. It’s important to understand this so that there are no surprises later.
Added security to your most sensitive files is always a good idea. However, if you’re concerned about whether you truly need this type of policy, here are some things you should consider.
If your business currently stores personal information from clients, accepts credit cards through websites, and keeps financial data stored in cloud services, then you need cybersecurity insurance.
Here’s the thing, according to the Identity Theft Resource Center, in 2018 around 571 businesses experienced some type of data breach, which exposed over 415 million employee and customer records. A cybersecurity insurance policy can help recover all the exposed data and give your employees and your customers peace of mind knowing that their information is safe in your hands.
Besides all the positives that come with purchasing a cybersecurity policy to help protect your business, there are some things buyers should consider before making the big jump.
Always keep in mind that even though these types of insurance policies will help cover damages and recover lost data, companies and employees can help reduce the likelihood of cyber crimes in their system by making simple adjustments to their routines in the office.
Just like with most policies, the costs of cybersecurity insurance vary depending on the company you go with, what type of policy you choose, and how much it covers.
These types of policies can range from about $1,500 per year for a $1 million in coverage, with deductibles as high as $10,000.
Of course, the costs can vary depending on key factors that form part of the policy you choose.
Making the choice of adding a cybersecurity policy to the list of costs that come with owning a business can feel like a lot—maybe even like it’s not that necessary. Before making the choice, know that even though you probably already have security measures in place to protect sensitive data, there are always new ways to break into systems.
Continuously updating security measures can help. However, a cybersecurity insurance policy offers an extra layer of security that can make it easier to recover should you have a data breach.
Costly? Yes. But never as costly as it would be to damage the reputation of the business and lose everything.