Considering Cybersecurity Insurance? There Are a Few Things You Should Know

Considering Cybersecurity Insurance? There Are a Few Things You Should Know

Insurance is a good idea for any business. Protecting a company from liability and risk is a wise move, whether you built it from the ground up or are entrusted by management to safeguard it. Unfortunately, we all function in a threat landscape, and it’s smart to be prepared with a good cybersecurity plan, as well as insurance to reduce the impact should something unforeseen happen. Cybercrime is a fast-growing business segment, and it’s no wonder as systems and businesses have grown more sophisticated, and store data that has value to criminals.

Some of us may remember a time not so long ago when people didn’t lock their houses and cars, but now it seems like everyone has tightened up their security. That’s because the world can be a threatening place, and it’s compounded by the fact that, in our litigious society, many people are looking to sue when they feel they have been exposed to wrongdoing. But there’s another reason that we’ve all become experts in personal security, though many people may not realize it. It all comes down to risk and risk management.

Insurance policies covering cybersecurity, networks and hardware, and valuable, proprietary data may cover network downtime and lost business time, the costs of dealing with cyber-extortion, and even insulate you from liability claims for privacy violations due to a breach to your network. Policies may also cover digital forensics investigations and consulting fees for cybersecurity experts to help with damage control.

Just as you invest in ways to ensure your business is protected, insurance companies do the same thing by writing their policies to protect them from customers using risky practices or outdated security measures. As with any insurance policy covering anything, the insurance company uses the language of the policy to make stipulations to the policyholder about how business should be conducted. The problem is, understanding what you need to remain in compliance with that policy can be a little cumbersome.

Don’t leave anything to chance. Have us review your new insurance policy before you sign, and make recommendations. We can help you train your team on best practices for cybersecurity, write your internal cybersecurity policy and disaster-recovery plan, and document your business compliance so you can get better premium rates. After all, the chances your insurer are going to have to pay out will have just dropped. And so will your premiums.

[Contact us today to learn more about insuring your business against cybersecurity threats.]

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