Are you aware of the increasing frequency of cyber threats? We recently published a blog about the risks of a cyber security breach and its potential effects on businesses of all sizes. The level of sophistication of cyber threats makes paramount the necessity for a plan to mitigate the financial impacts of future incidents. A strong cyber insurance policy is essential for companies to bolster their defenses.
Cybersecurity insurance, also known as cyber insurance or cyber liability insurance, can cover a range of expenses and losses that result from cyber incidents and data breaches. By providing financial protection against the losses associated with a data breach, legal penalties, and business interruption, cyber insurance ensures that businesses can survive the complexities of potential risks.
Coverage plans can vary widely based on the insurer and specifics of the policy. Cybersecurity insurance protects more than network security and privacy. Plans assist with crisis management and public relations as well as covering costs associated with the following:
- Data breach and restoration
- Business interruption
- Ransomware and extortion
- Cyber incident response
- Legal defense due to regulatory fines and penalties
- Electronic media liability
However, cyber liability insurance may give businesses a false sense of security. Insurance companies often evade paying settlements and in recent years, premiums for comprehensive policies have skyrocketed. The application process has become more complicated and arduous, growing from a few questions to three to five pages. Claims are denied if any application information is misrepresented.
To reduce the costs of cybersecurity insurance, businesses must have a strong cybersecurity policy and robust cybersecurity practices in place. When insurance companies assess the level of risk associated with insuring a business, a well-demonstrated, proactive commitment to cybersecurity can lead to lower policy premiums and more favorable terms.
Working with professionals who specialize in cybersecurity insurance can help ensure that your company’s policies and practices are accurately documented and factored into the policy pricing process. With experience in all aspects of #datacom, Abilita’s consultants are well versed in cybersecurity best practices as well as individualized policies. We can come alongside you to help evaluate cyber insurance policies, coverage, and costs and choose the best solution for your specific needs.
Contact #Abilita to review your risk management processes and develop a security plan that will ensure your business is protected from cyber threats.