Is cyber insurance necessary for your company?
Picture this: you’ve just learned that sensitive data within your business has been leaked. This constitutes a severe breach and could cost thousands in damages alone. That isn’t even going into the legal ramifications. Many businesses fail due to the heavy fines they’re slapped with if their data protection measures aren’t up-to-scratch.
And with the rise in ransomware attacks, cybersecurity is more essential than ever before.
One aspect often overlooked is cyber insurance. Over the last year, payouts have tripled, rising to over £197m, meaning the cost of insurance could rise with it.
However, as unwanted as it is, it’s a necessary expense. A business with no cyber insurance has no bedrock on which to recover effectively, and a cyber recovery plan is just as integral to your cyber resilience as the security measures themselves.
Fireproofing Your Business
Because cybersecurity is almost wholly digital, it can be difficult to imagine why it’s so vital. Such an attitude is embodied in the phrase: “That’s for IT to sort out.”
But not having cyber insurance would be the equivalent of not having a fire alarm in your building. It’s a safety measure that’s required in case the worst happens.
Take Jaguar Land Rover. Such a huge company seems invincible. Surely, they would have cyber insurance!
Turns out, they didn’t.
As a result, JLR experienced a catastrophic data breach. The cyber-attack drained their finances so badly it has almost crippled them. The best they can hope for by the end of this financial year is to break even.
Had they invested in cyber insurance, the recovery might not have been such an ordeal.
Why Your Business Needs Cyber Insurance
Your business doesn’t just need cyber insurance, it deserves it. You owe it to your company to give it the softest mattress it can land on in case things go wrong.
You wouldn’t let your business premises go without a fire alarm, fire extinguishers, fire exits or fire blankets.
It’s unlikely to happen. It probably will never happen. But there’s a possibility it could happen. And that is enough reason to have it in place.
The principle for cyber insurance is the same. Investing in it is the first step in building that recovery strategy. Should your business ever become a target of a data breach, you can rely on it to cover much of the financial loss.
Making a Claim
On the other hand, insurance companies will not dish out money to anyone. There are certain criteria that must be met before you make a claim:
1) GDPR Compliance
The moment a data breach occurs, it’s a legal requirement that a business reports it to the ICO. Many are reluctant, as the penalty can be steep once an investigation is conducted.
However, if your business did everything it could to protect sensitive data, then the consequences will be drastically reduced.
The same goes for your cyber insurance. If it’s evident that your company did everything right, there will be fewer hurdles to jump to receive your claim.
2) Covering All Bases
When it comes to cybersecurity, it’s difficult to know where to start. Moreover, it can be difficult to know if you have the right amount of security.
We’d argue that there’s no such thing as “too much” security. The more you can get, the better. And the more you acquire, the less likely you’ll need to claim on your cyber insurance.
Regardless, knowing that you have all eventualities covered in your plan goes a long way in helping your business recover.
Get the Best Cyber Insurance Claim with bSecured
With bSecured, building your business’s cyber resiliency is an absolute breeze. Not only does it provide all the best solutions in one all-inclusive package, but it also provides the evidence you need should the worst ever happen.
From dark web monitoring to next-gen antivirus solutions, you can quickly and effectively gain robust IT support from our expert team and secure your sensitive data against the most common cyber threats.
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