The rise of cloud computing has ushered in a new age of digital transformation. Gone are the days of bolt-on solutions designed to patch existing processes. Today, forward-thinking organizations are rebuilding entire departments around the increased capabilities that emerging solutions can provide.
Indeed, technology is paving the way for business growth like never before—but with this increased reliance on technology comes greater risk in the event of a cyber-attack. So, what can you do to protect yourself from the consequences of a data breach? In addition to maintaining a robust IT security and backup program, many organizations choose to hedge their risk with cyber insurance.
Cybersecurity insurance is a type of coverage that protects businesses from the financial repercussions associated with breach remediation and data recovery efforts. Sounds pretty good, right? It can be, but before you rush out to buy a policy, there are a few things you should know about this type of insurance.
Cyber Risk Insurance: What it does
Cybersecurity insurance covers a share of the cost associated with a cyber-attack, beginning with third-party remediation and consulting services. Other covered expenses may include forensic investigation, public relations, and credit monitoring for affected customers. In the event of a lawsuit stemming from a cyber-attack or data breach, a cyber insurance policy may also help cover the cost of legal representation.
Cyber Insurance: What it doesn’t do
In the same way that your car insurance doesn’t protect you from getting into an accident, cybersecurity insurance does not protect an organization from falling victim to a cyber-attack. Cyber insurance exists solely to offset the costs after a breach has taken place. With that said, it’s important to note that different policies carry different exclusions and limitations. Before you consider cyber insurance, you should schedule an audit of your security layers with a reputable managed services provider.
What you need to know before you buy Cyber Liability Insurance
As with any type of insurance, it’s important to know what is and isn’t covered under the terms of your policy. Make sure you know what types of breaches are covered and what, if any, security precautions are requisite to validate a claim. Commonly required measures include security information and event management (SIEM), traffic logging, and annual penetration testing.
Second, understand the limits of your coverage. Cybersecurity insurance policies have a ceiling on the amount of coverage they provide. Make sure you understand these limits and consider whether or not they are sufficient for your business. In the same way, think about your deductible. Make sure to select a plan with a deductible that will be feasible to pay in the event of a claim.
Finally, be sure to shop different carriers before you decide on a specific policy. Just as with other types of insurance, a little bit of due diligence can go a long way.
Cybersecurity insurance is a great way to protect yourself on the back end of a cyber-attack. With that said, an ounce of prevention is worth a pound of cure. Regularly audit your network security to ensure that you’re in the best possible position to avoid a breach, and make sure to have a comprehensive business continuity plan should a breach take place.
Interested in learning more? Contact our team of IT Security experts to schedule a comprehensive network assessment.