Chances are, you have either heard about organizations suffering as a result of data breaches or have experienced it firsthand at your own company. When hackers access an organization’s system and expose or steal sensitive information, the cost of the fallout can mount quickly, sometimes climbing into the millions.
In response to rising threats of this nature, companies are training employees to exert more caution when accessing files, as negligence is a major factor in many breaches. Businesses are also investing in more sophisticated technology to defend against attacks. But neither of these measures are foolproof, and this is where cyber security insurance comes in.
The Critical Factors
Just like any type of insurance, cyber policies are not all made equal. In order to find the right fit for your organization, it is important to consider the following factors when shopping for coverage:
- Whether or not the policy’s premium is worth the cost
- What the policy covers and if it suits your company’s needs (coverage for most policies includes crisis management, response costs, investigative costs and legal expenses)
- Recommendations from risk managers or C-suite executives at other organizations that have purchased cyber security insurance
While it may be fairly new, cyber security insurance is similar to other types of insurance in that it protects a major investment – in this case, your business. Think of it as a rescue crew that helps restore a neighborhood after a natural disaster hits. There may be damage, but the crew will fix it.