Cyberattacks have become routine in our ultra-connected society, and businesses are increasingly vulnerable to hackers. Cyberattacks are unpredictable and potentially very costly, but many people don’t know where to start when it comes to protecting their data and systems. Did you know that a solution exists? Cyber insurance offers financial protection from cyberattacks, but what exactly does it cover?
The IT outsourcing specialists at Groupe SL know all about security risks. Keep reading to learn about the advantages and limits of cyber insurance, and how it can protect you and your business now.
What is a cyber threat?
Cyber threats are events or circumstances that pose a danger to the security of a company or individual’s computer system. Hackers use sophisticated techniques to access sensitive information, steal data or disrupt the operation of computer systems.
Cyber threats can take different forms, such as phishing or the exploitation of vulnerabilities in software and networks.
Types of personal information that can be compromised include:
- Driver’s license numbers
- Social Insurance Numbers
- Email addresses
- Credit or debit card numbers
- Employees’ personal information
- Medical information
- Confidential personal information such as passport numbers
What are the benefits of cybersecurity insurance?
Cyber insurance protects your business from the risks of cybercrime and covers various threats. It can help in the event of a management crisis, during data recovery or if you need to repair your system, by minimizing potential financial losses and limiting damage to your company’s reputation. Cyber insurance provides financial assistance and helps restore customer confidence.
It covers a variety of risks, including:
- Identity theft: Every year, many people are affected by this common type of cybercrime. Companies should be prepared for attempts at identity theft and educate their employees on cybersecurity best practices.
- Personal data breaches
- The consequences of cyberattacks: Cyber insurance offers some financial protection to cover legal fees and possible fines
- Online fraud
- Cyber bullying
- Cyber extortion: Some cyber criminals will steal data from a business and demand a ransom in exchange. SMBs can purchase insurance to strengthen their corporate data cybersecurity, but it is crucial to clarify with your provider what will happen in the event of an attack.
- Attacks on operating systems.
Choose insurance that suits your specific business (or individual) needs, especially if your company handles sensitive data. Opt for comprehensive cyber insurance coverage or choose to work with a technology risk management professional, so that you can strengthen the security of your computer system and avoid damages caused by cybercrime.
Limitations of cyber insurance
While cyber insurance can be an effective tool for protecting businesses against the risks of cyberattacks, it does have some limitations.
Cyber insurance is not a substitute for an effective IT security strategy
Implementing security measures like firewalls and antivirus and data protection software is essential for minimizing the risk of cyberattacks. Companies should invest in technology and training in addition to insurance. EDR or Endpoint Detection and Response security solutions are a powerful security option suited to many types of companies.
Cyber insurance exclusions
As with any insurance, it’s important to understand the terms of the insurance policy and verify what is covered and what is not. Common exclusions may include:
- Damage caused by malicious employees
- Management or human error causing financial loss due to data loss
- Losses caused by offline events such as fire or flood.
How to choose the right cyber insurance policy
Choosing the right type of cyber insurance can help businesses protect themselves against the costly consequences of a cyberattack.
- Assess your company’s cybersecurity risk: Before choosing a cyber insurance policy, identify areas of risk and determine what type of coverage your company needs.
- Analyze the types of coverage offered by insurers: It’s important to compare various cyber insurance coverage options to find the policy that best suits your company.
- Evaluate cyber insurance costs: The cost of cyber insurance varies depending on coverage options and liability limits. Look for cyber insurance that provides adequate coverage at a reasonable cost.
Remember that cyber insurance cannot replace an effective IT security strategy. All companies should implement robust IT security measures or outsource their IT services to reduce the risk of cyberattacks.
Groupe SL can help you protect your data and your business against cyberattacks
Protect your business and reduce your organization’s cybersecurity risk with cyber insurance!
In the event of an attack, cyber insurance can help you recover your data and restore your systems, as well as offering financial protection against losses and lawsuits. It can also limit damage to your reputation and support you in restoring customer trust.
Don’t leave your business vulnerable to cyberattacks! Talk to a professional about getting cyber security insurance today or contact an IT support expert to make your security stronger.