Data – Your Company’s Greatest Asset
In today’s digital world, businesses, both large and small, are only as strong as their data. From sales reports, financial statements, and inventory lists, to customer records, marketing materials, and future projections – the key operational assets of your business are online and imperative to the operational security and success of your enterprise.
As digital business assets present such great value in today’s economy, it also opens them up to great risk as online security breaches and data threats become ever-more commonplace. According to analyst firm Cyber security Ventures, cyber security breaches are estimated to cost businesses globally $6 trillion annually by 2021. Insuring your business against such a breach and securing its protection against liability is most assuredly a wise decision for today’s business owner.
What is Cyber security Insurance?
Cyber security insurance is a specialized insurance policy purchased by a business owner to protect their company’s digital assets in case of an online security breach. Cyber security insurance policies offer a business coverage when financial losses are caused by compromised digital data and network system outages. Certain policies may also protect a company against financial losses incurred by customer liabilities, or reimburse a company for public relations expenses in the event business image repair is required due to a publicized cyber security breach.
Benefits of Cyber security Insurance
The benefits of cyber security insurance extend beyond the financial as today’s consumer is very aware of online data threats and in many cases will seek out services and products from businesses which afford the greatest protection of their digital assets. Learning as much as you can about the cyber security insurance policy options for your business, the coverage and protections they provide, and their impact on your organization’s long term success is a solid next step for your company’s strategic planning initiatives.
Cyber Insurance Coverage
- Privacy and Security Liability: If you maintain private employee or customer data like credit card numbers, you are liable if the information slips out because of faults in your systems or theft by hackers or malicious employees. Privacy and security liability coverage also protects you from costly corporate claims from businesses like banks and credit card issuers, who can sue even if the losses don’t occur inside your shop.
- Crisis Management: Covers costs for restoring lost or corrupted data, and getting your systems back up and running. Some carriers include public relations coverage to help defray the costs of consultants and advertising to rebuild your reputation after an incident.
- Business Interruption: Denial-of-service attack and lost income coverage kicks in if you lose revenue after an attack or when a service provider, such as a web host, is shut down by a cyber attack, has a glitch or goes out of business. It also helps defray costs of restoring valuable data and repairing systems.
- Cyber extortion: People threaten your computer systems or web site, then demand money or goods to call off the threat. Extortionists increasingly target small businesses because of their perceived inability to fight back, says Economidis. Cyber extortion policies often cover the settlement and the cost of hiring a security firm to track down the perpetrators