The growing reliance on data and digital channels to manage business processes has elevated the demand for and importance of cyber risk insurance. Recent cyberattacks, which have resulted in profound loss for organizations, have highlighted the urgency of effectively managing risk as a business. Soon cyber insurance will become mandatory for all businesses.
An organization that is not covered for potential loss through cyberattacks while doing business online, is like a person driving a car at top speed without any insurance. It’s highly precarious and the cost to repair the damage could be devastating, if not fatal, to the organization. So although premiums for cyber insurance can be high, not being covered can be far costlier.
Cyber insurance products make good commercial business sense for any business who operates in the cyberspace. These products are designed to cover risks specific to the cyber environment and include first party coverage which covers a business from data loss replacement / restoration costs, forensic investigation, business interruption expenses, etc. and third party coverage which enables a business to defend itself from potential lawsuits by customers, business partners and shareholders.
Purchasing a cyber insurance policy can be tricky because it isn’t a matter of one-size-fits-all. Policies need to be customised according to the unique requirements of an organization such as scale of the organization, the type of data being collected and stored and the degree of cyber exposure.
This topic will discuss the advantages of making sure your organization is insured and all the factors that need to be considered when thinking about a cyber insurance policy that takes into account the unique requirements of your business.