Cyber Security – Insurance v Resilience
People often question why a business requires cyber insurance if they have ongoing support from their IT provider. Whilst your IT company can put measures in place to best protect your business from the risk of a cyber-attack, having a cyber insurance policy insures your business against the costs incurred if you were the victim of such an attack.
Your IT company will assist your business with implementing cyber resilience measures to best protect your IT system. This not only includes hardware and software to protect against the risk of ongoing threats but also implementing a security awareness program to help educate your staff on potential risks, such as phishing emails.
So where does cyber insurance fit in? Cyber insurance allows a business to claim expenses, or possible legal costs if the business’ reputation is harmed during a cyber event. This often happens when sensitive personal information is leaked, and legal action is taken against the organisation.
Regardless of how good of a security software system is in place, end-user action or a new virus/malware/spyware which has not been detected by your antivirus software can lead to issues, including hardware failure. The intention of a cyber insurance policy is to provide protection against the costs that your business would be liable for due to a cyber breach or incident.
When applying for cyber insurance, company’s need to ensure that they meet the minimum requirements before they’re eligible for cyber cover. In the same way that the insurance company may not pay out a claim if, for example, you left your house unlocked allowing intruders easy access, cyber insurance providers are now rejecting claims if businesses aren’t best protecting themselves from cyber-attacks.
If you’d like to find out more about increasing your cyber resilience or cyber insurance options available to your business, get in touch with the team at Provide Technology and Provide Insurance today.
