Is Cybersecurity Insurance Necessary for Your Business?

Aug 8, 2022

In the digital age, you need all the protection you can get from cyberattacks. For additional coverage against cyberthreats, cybersecurity insurance may be right for you. Cybersecurity insurance is a form of insurance used to help provide additional coverage to your business from cyberattacks, such as data breaches or ransomware attacks. Having a strong security posture is your first step in protection. But in the event that your business is subject to an attack, it’s good to know that there are additional options out there like cybersecurity insurance that provide an extra lifeline to keep your business afloat.

If having that extra layer of protection piques your interest, let’s get more in-depth with what cybersecurity insurance is and how it can provide a benefit to your organization’s protection.

 

What Can Cybersecurity Insurance Cover?

If you are faced with a cyberattack, most insurance policies will cover first-party and third-party financial and reputational costs. Here is the difference between each type of coverage:

  • First-Party: First-party costs can include recovering lost data in a security breach, loss of income due to business downtime, extortion payments, restoration of network systems and other financial risks related to a cyberattack that impacted your business.
  • Third-Party: These costs typically result from claims submitted against your business and can include damages, settlements and the legal costs associated with the impact of the breach.

 

Do You Need Cybersecurity Insurance?

Typically, it is beneficial for businesses who use, send or store data electronically to consider obtaining some form of cybersecurity insurance coverage. All types of private data can be vulnerable to a cyberattack, so cybersecurity insurance can help mitigate the risks of an attack by providing financial coverage for certain events related to a breach.

 

What Are Some Common Cybercrimes That Can Affect Your Business?

No business is immune to a cyberattack, and it can happen when you least expect it. There are many types of criminal activities that can happen online, but for the sake of this topic, let’s take a deeper look into some of the most common cybercrimes that can affect your business:

  • Malware: A cybercriminal can use a malicious software program to install itself into your computer system. This typically is a result of a phishing scam that is aimed at exploiting software vulnerabilities in your system. Once installed, the cybercriminal can spy on things you do online as well as steal sensitive data.
  • Ransomware: This form of malware involves encrypting your data to demand a ransom payment in exchange for your data back. Having a strong data recovery plan in place is an imperative precaution to have as well as maintaining a backup of your data.
  • Hacking: The general reasoning behind hacking is to obtain access to important information. This can be accomplished by taking control of a computer system or certain systems functions within.

 

In Conclusion

We hope you’ve learned more about what cybersecurity insurance is and how it might help protect you against cyberattacks. But here’s a question for you: Are you sure your business has a strong enough security posture in place to thwart an attack? At Securus Systems, our experts can help identify and address vulnerabilities in your system. Talk to a specialist today to learn more about how we can improve your cybersecurity solutions.

If you’re looking to learn even more about all things cybersecurity or how you can improve your protection, check out more of our blogs in our resources section.

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