Is Having Cyber Security Insurance A Worthwhile Investment?

The future of business is digital. The traditional ways of conducting business are being slowly replaced with online and more interactive forms. Moreover, the number of transactions that are being carried out over the internet have increased manifolds. Thus, everyone who is either a sender or receiver in a transaction poses a risk of fraud and theft. Other than financial transactions, the organisation’s reputation is also at stake due to such cyber frauds. There is no longer just one touchpoint with the customer of an organisation, but multiple ones by way of social media channels. The security of these social channels also is at stake when cyber-crimes take place. Companies are holders of large data pertaining to their customers. Data fraud can compromise the privacy of millions of users. To tackle the various problems of conducting an online business, a cyber security system is essential. But apart from strong security layers in the information architecture, organisations also need to secure their financial interest by investing in a cyber insurance policy. Hackers and unethical individuals try to breach these security systems. That’s when cyber security insurance comes to the rescue.

What is cyber security insurance?

A cyber insurance policy is a specialised type of insurance cover that safeguards businesses and individuals from the financial risk that data breaches and other information technology-related risks bring about. This general insurance cover started to gain prominence a couple of decades ago when internet accessibility started to become a household thing. *

Do you need cyber insurance?

The most likely answer is a big yes! The smartphones in your pockets are more than just communication devices. They help you stay connected with people using the internet infrastructure. Thus, you are exposed to the different forms of cyber risks that exist and it is essential to cover yourself with a cyber insurance plan. *

What does cyber insurance coverage include?

There are different types of cyber insurance policies that are available. Based on the insurance policy, the cyber insurance coverage differs. Listed below are some of the common types of costs included in your cyber insurance policy:

1. Investigation cost

A cyber-attack does not mean the insurance company simply compensates for its loss. A thorough investigation is carried out to identify the answers to the following questions:

• What damage has occurred?
• How can we repair the damage?
• Is there any significant data loss?
• Does the attack pose a threat to the organisation going forward?
• How can it be prevented in the future?

These costs of investigation are included in the cyber insurance policy’s scope. *

2. Loss to the business

A cyber insurance policy’s scope includes financial coverage for your business. This can be due to network downtime, business interruption, data loss and even the costs to manage these risks. *

3. Identity theft

Unauthorised access to personal information used by cybercriminals to commit crimes is classified as identity theft that is covered in a cyber insurance claim. Further, costs related to defence and prosecution are also covered. * * Standard T&C Apply These were some reasons why buying a cyber insurance cover is a worthwhile investment. In conclusion, it may not be too far-fetched to assume that your business possesses data or resources that cybercriminals want. Hence, cyber insurance is a worthwhile investment for your business.   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.