Network Synergy Blog
Is Cyber Insurance Worth It? (Spoiler Alert: It Is)
Insurance is a great asset, should you ever need it… including where your business technology is concerned. If you weren’t aware, there is a form of insurance—cyber insurance—that you can purchase in case your business suffers from a data breach.
Is this additional form of insurance worth the investment? Absolutely.
Let’s take a few moments and explore why you’ll be happy to have cyber insurance when the time comes
What is Cyber/Cybersecurity/Cyber Liability Insurance?
Cyber insurance, like any other form of insurance, is meant to help cover the financial impacts of a given event. In this case, the event would be some kind of cyberattack.
It can be easy to underestimate the fallout that a cyberattack can have. Sure, there’s the immediate issue that the attack itself creates in terms of lost time and productivity, but there are plenty of other impacts and aftereffects that are also associated with these attacks as well.
For instance, if you’ve lost data, you could very well face significant fines from the government, on top of the definite lack of trust the general populous will likely feel toward your business once word gets out about your data loss event.
Then, you also have to consider how much it will cost to restore your business, fixing the systems that have been impacted and influenced by the attack. You need to account for all the business that the aforementioned lack of trust will lose you. You need to factor in the cost of all the notifications that you will need to send out to those impacted by your data breach.
This is a pretty, pretty penny… far more than you can realistically budget away in your IT costs.
Hence, cyber insurance.
What Can Cyber Insurance Help Cover?
There are assorted needs that cyber insurance can help you to pay for, if need be, including:
- Notifying affected parties
- Resolving security issues
- Providing credit monitoring services for those impacted
- Extortion payments
- Expenses related to resuming your business practices
- Covering public relations costs
Who Needs Cyber Insurance?
To put it in no uncertain terms: any business that stores or handles sensitive information, whether that’s financial data, medical information, contact details, or personally identifiable information.
Don’t get us wrong, we don’t hope that you ever have a need for cyber insurance—we just know it is better to be prepared. Having said that, we’re also here to help minimize the chances that you’ll ever need it.
Reach out to us to learn more about our comprehensive cybersecurity services by calling (203) 261-2201.