Cybersecurity insurance is an important part of any business’s risk management strategy. We will talk more about creating a Risk Management Program a bit later in a future blog, but the need for insurance continues to increase. Cyber threats are becoming more sophisticated and widespread, and with the potential for serious financial losses from even a single attack, having a strong cyber insurance policy in place can help to mitigate the risks.
What has become alarming to me is how expensive cybersecurity insurance has become and how this might deter folks from purchasing this much needed protection. In a nutshell the protection that a well written cyber-policy could provide may impact your business’ very existence. Here are the key loss categories that a policy could address:
- Money lost due to fraudulent instruction by a third party (i.e., phishing)
- Lost business income and data recovery costs due to an extortion threat (i.e., a ransomware demand) or breach.
- The costs to comply with regulatory requirements, including defense against lawsuits and regulatory fines.
- Expert breach response services if an attack occurs.