Why Cyber Insurance is a Must for Businesses

By Insurance CIO Outlook | Tuesday, July 16, 2019

Cyber InsuranceCyber insurance can be an alluring addition to an institution's cybersecurity endeavors, but understanding the boundaries of such policies is vital to managing uncertainty.

FREMONT, CA: In the digital age, concern about digital crime is at an all-time high. Businesses rely on the internet to do almost everything, right from buying groceries to transferring funds. With the heavy reliance on the internet, personal and financial information is usually shared online which, in turn, renders us vulnerable to identity theft and the misuse of such data. Both businesses and individuals alike are susceptible to the risk of a data breach due to a steep rise in cybercrime. Having digital insurance or cyber insurance policy has become prominent now.

Check This Out: Top CyberSecurity Solution Companies

Cyber Insurance gives financial protection against damages caused due to unauthorized access to private data. Costs related to photocopying of documents, prosecution, and transportation to and from court hearings are covered. If personal content is published or broadcast without authorization, a cyber insurance policy will cover prosecution-related costs. Cyberstalking has become customary intimidation due to secure access to social media. Personal cyber insurance will bear coverage for prosecution costs incurred while dealing with the aftermath of cyberstalking.

All costs such as recovery costs, expenses related to photocopying of records, and transportation expenses will be covered in the event of a cybersecurity breach generated by malware. A cyber insurance policy benefits include the costs acquired to recover your personal, financial, or business data in case it is compromised or if you have received threats that could lead to extortion. In case the data is breached or shared by a third party without authorization, cyber insurance will cover any losses arising out of the same.

Businesses should understand that cyber insurance isn't a replacement for cybersecurity. Cyber-insurance policies also do not eliminate the necessity for businesses to take proactive measures to secure systems. Keeping all software and operating systems updated and running robust, up-to-date antivirus software is what organizations can do to mitigate cybercrime.    

Few CyberSecurity Solution Companies: Armor, FireEye Inc, Fortinet

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