Do You Need Cybersecurity Insurance and Do You Qualify for It?
The business world continues to experience increased cyber crimes as hackers devise more creative ways to hack systems and manipulate sensitive data belonging to organizations and their customers.
Statistics show that businesses lost over $6 trillion in 2021. The figure will likely grow to $10 trillion in 2025. This means businesses will be more vulnerable, especially those who do not take critical measures to mitigate cybercrimes.
It will also be challenging for businesses without insurance coverage because they will incur more losses that stall their growth and continuity. But the question is, do you qualify for cybersecurity insurance? This guide will teach you what cybersecurity insurance is and why you need it.
What is Cybersecurity Insurance?
Cybersecurity insurance is coverage for data breaches that could occur in your business. The policy helps you recover what you lost in a cyber-attack, including sensitive customer details. Attacks happen anytime, and you could be a victim. This is why it is best to have coverage to recover the losses incurred from a data breach.
Why Do You Need Cybersecurity Insurance?
Covers for Data Breach Fines and Penalties
When a cyber-attack occurs, you risk losing customers’ information to hackers. Hackers can manipulate and compromise the data. As a result, your business may face severe penalties and will be liable for paying the cost of investigation, credit card costs, and the stolen details of the customers. The costs can be as high as thousands of dollars. Having cyber-security insurance is an ideal way to cover the losses and penalties.
Restoring the Reputation of Your Business
When a data breach occurs, you will have to rebuild your business reputation afresh because your existing customers will likely stop doing business with you. This will not only be frustrating and time-consuming but will also require a considerable sum of money.
Insurance coverage will cover the cost of hiring a public relations company to help you restore the sanity of your business. An experienced cyber-crime expert such as LAN Infotech can also offer exceptional support and guide you to stay ahead of cyber-attacks and protect your business reputation.
Risk Management Services
If your business doesn’t have an effective risk management strategy, you could experience massive losses after a cyber-attack. Your IT department would be at high risk, making the entire organization vulnerable to frequent attacks.
With cybersecurity coverage, your insurer will assess your IT risks and advise you on managing your infrastructure without needing an in-house risk management team. This can save you money in the long run because you won’t have to incur the costs of setting up and managing a risk management department.
Restoration of Your Business
When cyber-attacks occur, your business may lose income due to the business interruption caused. Even if you have business interruption coverage, you will still need cybersecurity insurance to cover the income loss because a business interruption policy doesn’t cover income loss. Instead, it only covers damage to your business property. Therefore, cybersecurity insurance can save you many losses.
Do You Qualify for Cybersecurity Insurance?
If you plan to invest in cybersecurity insurance but do not know whether you qualify or where to begin, it is best to research in-depth and make informed decisions.
Having cybersecurity coverage is essential whether you’ve ever experienced data breaches or not. This is because hackers can strike at any time and affect your operations.
LAN Infotech can provide excellent support to secure robust cybersecurity coverage. We can also help you meet the required standards in the claim process. Speak to the LAN Infotech team and uncover how our cybersecurity services will help you comply with the cybersecurity insurance policy.
Unfortunately, you will not enjoy the services that come with cybersecurity insurance if you do not meet the standards. Having a standard and up-to-par data breach policy will provide a high layer of security for your business. This is why it is best to seek help from an experienced service provider such as LAN Infotech to guide and advise you accordingly.
Questions Your South Florida Insurer Will Ask You when Applying for Cybersecurity Insurance
When signing up for insurance, you may have questions to ask the insurance company to help you make informed decisions. The insurer will also ask you several questions to determine your business’s data breach coverage. Here are several questions your South Florida insurance carrier will likely ask you.
- Do you store spam and other unwanted emails outside of employee inboxes?
- Do you verify the source of emails before opening them?
- Do you have a solution in place to detect malicious emails?
- Do you have endpoint encryption for your business?
- Do you have a policy against opening spam emails?
- Do you have multi-factor authentication for all your accounts?
- How do you store backup? Is it onsite or offsite?
- What mechanism do you use to protect your offsite backups?
- What cloud syncing service do you use?
- Have you backed up your cloud?
- Do you allow employees to access business data on personal devices?
- Are your emails encrypted?
- How often do you train your staff about phishing attacks?
- Do you have data breach risk management in place?
- Do you have a 24/7 monitoring plan for your system? Do you involve a third-party service provider in your IT-related tasks?
- Do all your employees understand your policy for data breaches?
- How often do you carry out vulnerability scans to test cybersecurity standards?
Answering the above questions will help you determine how to set the correct standards to curb data breaches, no matter the size of your business. You may want to work with a cybersecurity expert such as LAN Infotech to guide you and help you save your company the costs of data breaches. LAN Infotech has a team of experts that offers professional services that will save you money in the long run.
Are You Planning to Get Cybersecurity Insurance for Your Business?
If you lack cybersecurity expertise, it can be challenging to understand and meet the required standards. LAN Infotech can help you determine the best approach to solve your data breach needs. Our team works with small and large-scale businesses to help you develop the best strategy to meet your cybersecurity needs. We will help your IT needs to keep your systems secure. Contact us today and let us guide you on how to get started.
Thanks to James and Jon with 4BIS.COM in Cincinnati for their help with this article. Click here to visit their website.
LAN Infotech is a Microsoft Cloud Services Provider, IT Managed Support company and a leader in helping law firms, nonprofits and medical organizations deploy cloud solutions, manage computer networks, keep data protected and top technology management company. Businesses like yours need technology support to run highly-effective organizations.