What You Need to Know About Cybersecurity Insurance

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Cybersecurity insurance policyThe use of technology has made life much easier but has also left us susceptible in new ways. As technology continues to improve, so does the technology of criminals. Even companies that recognize cybersecurity threats can fall victim to the dangers of technology.

Insurance against the unknown is normal and cybersecurity insurance has now become an option. According to the U.S. Department of Homeland Security, “traditional commercial general liability and property insurance policies typically exclude cyber risks, leading to the emergence of cybersecurity insurance as a “stand alone” line of coverage.”

Read on to learn what you need to know about protecting your business against these threats.

Prepare for Battle

Before you find a cybersecurity insurance broker and a policy, there are a few steps you can take to lower your premiums.

Any company should be prepared for a cyberattack. Hackers often steal information from weaker security systems to use on other websites. Your business may not have valuable information, but others do.

Take steps to encrypt devices, install firewalls, and inform your employees about the dangers of phishing scams. Investing in your cybersecurity early and often will protect you best.

If you have a properly secured network, your company will not be considered high risk and your cybersecurity insurance policy will have lower premiums. In some cases, you may even be required to meet a baseline for your security measures before you’ll be insured.

Choose Your Ally

There are two types of cybersecurity insurance coverage available: first-party and third-party coverage. It’ll be up to you to decide which policy your company needs.

First-party insurance will cover you, the policyholder, from any direct losses due to the security breach.

You’ll have protections against such situations as:

  • Theft
  • Property damage
  • Loss of income
  • Ransom
  • Extortion

Third-party insurance will protect you if your clients experience a loss of personal data.

These repercussions can include:

  • Settlements
  • Privacy liability
  • Media liability
  • Credit monitoring
  • Restitution fees
  • Legal fees

The type of cybersecurity insurance you need depends on your business. You’ll have to do your research to make sure your policy covers the areas that you’re most concerned about.

The time spent is well worth it. A single security break can cost a small business up to $55,000 while insurance may cost as little as $150 a year.

Don’t Wait, Get Cybersecurity Insurance

Cybersecurity insurance cannot protect your business against attacks and should never be considered a substitute for actual security measures and education. It’s there in case the unthinkable and, in some cases, inevitable happens.

By law, you’re not yet required to have this new type of policy. However, you’ll find the option to be incredibly helpful as technology continues to involve.

Proper cybersecurity measures give your clients and yourself peace of mind and it’s easy to get started. Contact a network security firm and you’ll be well on your way to having a safer, more secure business.

Sagacent Technologies offers technology management and support, including proactive/preventative maintenance, onsite and offsite data back-ups, network and security audits, mobility solutions, disaster planning and emergency business resumption services. The company serves clients of 10 to 150 employees within the Silicon Valley region.