It’s easy to assume that a push for Cyber Insurance is just more FUD, but the reality is if you are in business, you are at risk.
Cyber insurance policies can protect your company against lawsuits for data security breaches, lawsuits regarding loss of confidential data, and cover the costs of hardware repair and even lost business.
It doesn’t matter if your business is large or small, the threat is real, and it can be costly. Standard business insurance does not cover data breaches or almost any other loss involving data. Standard insurance covers tangible losses and damage; and data isn’t tangible.
As hackers become more sophisticated in their attacks, insurance may soon become a standard line of defense against malicious intent. Types of cyber coverage currently available include:
- Data breach coverage
- Regulatory civil action coverage
- Cyber extortion coverage
- Virus liability
- Content liability
- Lost income coverage
- Loss of data coverage
- Errors and omissions coverage
One final note. Cyber Insurance shouldn’t replace a solid security infrastructure. Preparing for an attack is the best defense.