Finance

Is Taking a Cyber insurance Policy worth it?

One may think that it is the big firms that are prone to cyber criminals and run the risk of data loss than most small-sized firms. But in reality, the size of firms doesn’t matter much, when it comes to cyber theft and hacking. Cyber criminals are always on the look-out for stealing valuable customer data, bank details and intellectual property to sell at the black market.

Growing cyber threats make cyber insurance a necessity and a must for every organisation’s risk management plan so that they are able to tackle the blows of legal expenses and associated settlement cost incurred in case of a data breach.

Why should a company get a digital insurance cover?

Having efficient digital insurance cover helps an organisation to mitigate the financial impacts of any cybercrime. Being prepared against such cyber threats not only helps the company to protect their brand reputation from being tarnished in the market and at the same time helps the company avoid any sort of interruption when it comes to operating their business. A company that has an efficient cyber insurance policy will be able to handle the blow of cybercrimes faster and better than those companies who do not regard cyber security as an important issue.

Cyber insurance or digital insurance policy tends to cover the following mentioned costs:

  • Investigation and forensic charges
  • Compensation claims
  • Penalties and fines as per the Privacy Act
  • Defence cost
  • Credit Monitoring
  • Cyber Extortion
  • Data Restoration charge
  • System Repair charge
  • Notification cost
  • Public Relations expense
  • Business Interruption loss

Most business insurance policies are exclusive of cyber security and would not necessarily respond to the crisis claim of a data breach or cyber-attack. No company amidst a cyber security issue would like to tackle the situation on their own without any expert guidance or knowledge. This is when having cyber insurance comes most handy as one can actually resort to the insurance provider due such emergencies for their assistance and guidance besides availing a claim for settling the penalties, fines and regulatory charges.

As the aspect of starting your business online is becoming easier, the risks of being exposed to cybercrimes are also increasing. Make sure to insure your company with a good cyber insurance cover to ensure cyber security and protection of the company’s valuable data. Different cyber insurance companies offer different coverage and therefore are quoted at different prices. Go through the details of various digital insurance policies to select the most suitable one as per your risks and requirements.

 

About the author

Charlie Brown

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