Should your insurance company offer cyber protection?

Website design By BotEap.comCyber ​​security has become a growing concern for American businesses in recent years, and for good reason. Data breaches have not only become more common, but also much larger. Nothing illustrates the state of modern web security better than the most recent breach, in which hackers targeted the IRS by exploiting flawed security to compromise more than 100,000 taxpayer records.

Website design By BotEap.comSimilar breaches have affected much smaller companies as well, and it’s common to see a forward-thinking insurance company racing to fit. Here’s what you need to know to determine if you really need cyber insurance in the first place, and what to look for in a policy, second.

Website design By BotEap.comAre you at risk?

Website design By BotEap.comIf you work with customer information of any kind, the answer is probably yes. The term to keep in mind here is personally identifiable information, or PII. It’s not a technical term, but more of a legal term that has some teeth if you have to deal with it.

Website design By BotEap.comBasically, PII is any piece of information collected that could allow a third party to identify individual customers of a company. Given how good the internet is at harnessing even the smallest clues to track down a person, that definition is awfully broad. Full names, email addresses, site nicknames, and (sometimes) even web cookies can all qualify as PII.

Website design By BotEap.comIf you’re storing something that falls under the PII umbrella, you risk a breach. Breaches are enormously costly, both for the affected customers and for the company responsible for the loss. Businesses in the healthcare and retail industries are obviously more at risk, but when it comes down to it, any business that is in the habit of collecting information should ask their insurance company about cyber policies.

Website design By BotEap.comWhat your cyber policy needs

Website design By BotEap.comYou will need to look for a few things in any cyber insurance policy. As you might expect, a good policy should cover economic damages directly caused by a breach. However, cyber attacks can cause financial damage in a wide variety of ways. In particular, make sure your business is protected against:

Website design By BotEap.com– Losses caused by loss of time and productivity. A major hack can bring the wheels of the company to a halt. Find an insurance company that guarantees coverage for lost earnings during this period.
– Compensation caused by a third party. Few modern companies handle your data on their own. Outsourced IT support or other companies may be victims of a breach that affects their customers.
– Loss of Reputation. Violated companies, even those that have done their due diligence, almost always take a public relations hit in the aftermath of an attack. A good policy offers some protection against customer losses that usually occur.

Website design By BotEap.comFinally, also do your best to work with an insurance company that has an educational component. Some plans will also include training to avoid a violation. As nice as the protection is, it’s safe to say it’s best left unused. Installing a set of best practices can help you avoid having to rely on a safety net in the first place.

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