Are You Waiting To Get Cyber Insurance?

Playing the waiting game is dangerous — once it’s too late, there’s no going back.

Are you hoping you won’t get hit by a cybercrime attack?

That’s a dangerous hope to hold on to. After all, 43% of all breaches involved small businesses in 2019.

We recently talked to a local business owner that experienced an IT nightmare — they got hit by ransomware and had no way to protect themselves.

For some time, they had been considering investing in cyber insurance. You hear about it more and more these days — it’s essentially a policy that covers your costs of recovery after you get hit by malware.

Needless to say, this business owner is sorry they waited to invest. They just kept assuming they’d have more time, that they could budget it in the next quarter or the next year.

This is the kind of assumption a lot of businesses make — since they haven’t been hit yet, they never will.

If that sounds familiar, then you should start thinking about your cybersecurity and investing in cyber insurance sooner rather than later.

What Is Cyber Insurance?

Often referred to as cyber liability or data breach liability insurance, Cyber Insurance is a type of stand-alone coverage recommended by any professional cybersecurity company.

Cyber Insurance is designed to help businesses cover the recovery costs associated with any kind of cybersecurity incident including:

• Breach And Event Response Coverage: A very general and high-level form of coverage, this covers a range of costs likely to be incurred in the fallout of a cybercrime event, such as forensic and investigative services; breach notification services (which could include legal fees, call center, mailing of materials, etc.); identity and fraud monitoring expenses; public relations and event management.
• Regulatory Coverage: Given that a range of organizations (such as The Securities and Exchange Commission, the Federal Trade Commission, the Department of Homeland Security, and more) have a hand in regulating aspects of cyber risk in specific industries, there are usually costs that come with defending an action by regulators. This covers the costs associated with insufficient security or “human error” that may have led to a privacy breach. Examples may include an employee losing a laptop or e-mailing a sensitive document to the wrong person.
• Liability Coverage: This type of coverage protects the policyholder and any insured individuals from the risks of liabilities that are a result of lawsuits or similar claims. Put simply, if you’re sued for claims that come within the coverage of the insurance policy, then this type of coverage will protect you.
• Cyber Extortion: This type of cybercrime event is generally a form of a ransomware attack, in which a cybercriminal keeps encrypted data inaccessible (or, alternatively, threatens to expose sensitive data) unless a ransom is paid. Coverage of this type addresses the costs of consultants and ransoms, including cryptocurrencies, for threats related to interrupting systems and releasing private information.

Do You Actually Need Cyber Insurance?

You may not be required by the law to have cyber insurance. However, certain compliance regulations, depending on the industry, do recommend it. Cyber Insurance policies are offered by a variety of insurers and policy prices and exclusions vary widely among different providers.

Odds are, it’s more likely you’ll need cyber liability insurance in one form or another at some point, which is why it’s wiser to invest now. At the very least, you should get a quote on a policy so you can make a properly informed decision.

Don’t Overlook Proactive Cybersecurity Protection

As important as cyber insurance is, don’t forget that it’s simply one part of an effective cybersecurity defense. You also need to protect your organization proactively.

SSE Inc. can help. Our team provides cybersecurity and technology services for organizations across the United States — we are available to help you develop a robust cybersecurity defense, minimizing the chance that you’ll ever have to make a claim on your cyber insurance.

You can start improving your cybersecurity in three simple steps:

1. Book a meeting with our team at a time that works for you.
2. Let us assess your cybersecurity and address any vulnerabilities we find.
3. Get back to focusing on your core business instead of worrying about your cybersecurity.