Buying Cyber Insurance – Why Consider It for Your Business

Buying Cyber Insurance – Why Consider It for Your Business

If you’re a homeowner in Florida during hurricane season, you’re going to need a backup generator. If there is a contamination issue in your town’s water supply, you’re going to buy cases and cases of water bottles. Since cyber crime is one of the fastest growing crimes in the world, you’re going to want to invest in cyber insurance.

Despite a massive upward trend in cyberattacks, most are not covered by standard property or crime insurance policies. Cyber insurance can offer coverage for a variety of electronic nightmares that threaten data and financial resources of all businesses today.

Who are the ideal candidates for cyber insurance?

  1. Retail, healthcare, online, and medical enterprises that process or store high volumes of consumer-related data as well as process credit/debit card payments are all subject to more cyberattacks than any other industry. Potential financial penalties for these businesses can be costly as they can be held liable for forensic investigation costs, credit card reissuance costs, and the fraud conducted on credit/debit cards.
  2. To provide financial security for their customers, banks must obtain cyber insurance for risk management and meet minimal regulatory compliance. It is essential that these financial institutions review their policies for coverage scope and limits to pinpoint any flaws in their security.
  3. Individuals who make payments on mobile devices. Applications such as Apple Pay, Venmo, and mobile bank apps are subject to cybercrimes.

What extra activities can you do to keep your information safe?

  • Run routine diagnostic tests to determine if operating at peak performance.
  • Revisit your detection, prevention, and response strategies regularly to make sure they are up to date.
  • Back up your data and have recovery tools available.
  • Have a multi-layered cyber security process in place including the dismantling and destruction of outdated and refreshed data storage equipment.

Do you have cyber insurance? What are the reasons you’ve decided that it’s a necessary protection for your business?

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