In other words, cyber insurance is a rapidly growing industry because cyber attacks are on the rise . Companies want to protect managing risks and costs that result. Soon, cyber insurance is something that all businesses, large and small, want more fire, flood, and protection against the standard flight. If you're still not sure if you need cyber insurance, take a look at six reasons why it is becoming more popular and why it is essential for your business.
DSI can not protect you from attacks Cyber
Often companies think they are 100 percent safe and a data breach could never happen to them because " they have a strong iT department. Consequently, they do not feel the need to buy a cyber insurance. However, history shows that even large companies that have mitigation funds are targeted by cyber attacks. For example, in February 2014, the St. Joseph Health System has suffered a cyber attack, compromising the health records of more than 405,000 patients. It took two days for employees to recognize the data breach before they are able to take the server offline.
You are wrong if you think your business does not have to worry about cyber attacks. It is impossible to be 100 percent sure. And your business, the greater the risk. You need cyber insurance to protect your company financially.
Cyber attacks are not generally covered by insurance policies
In the past, many companies mistakenly believed they were already covered in the case of a cyber attack because of their general insurance policy. However, it was not generally true. You can find general liability policies that help protect against cyber attacks, but they have generally not the extent of coverage you get from cyber insurance stand-alone.
property, casualty, and professional liability policies are carefully drafted to specify that attacks on data security and cyber-attacks are not covered. For example, general liability policies generally list only injury to the "tangible" property is covered. The main reason for this is that it is difficult to put a price on something that you can not hold in your hands, like millions of customer records that are stored virtually.
Companies must close operations until attacks are resolved
When companies experience a cyber attack, they must close their website and business to it is safe for customers and employees to use. The companies can not make money unless they are open, which means that cyber attacks are a nightmare, especially if the company has no cyber insurance to cover loss of income. Many employees working remotely or on enterprise servers and can not do their job if the operations are closed. Guests may not purchase products and services.
Cyber insurance helps companies manage the effects of a cyber attack quickly, so they can open and start making money again. For example, if a company discovers that a cyber attack was targeted at their credit card payment system, it is unethical to keep the business open because it puts the customer information at risk . They should close until the cyber attack is resolved. Target faces a similar cyber attack in early 2014. As a result, Target has offered its customers one year free credit monitoring day after their franchise was targeted by hackers who stole credit card information of customer.
It is expensive to face the consequences of a cyber attack
Not only companies suffer a loss of revenue and hours employees, they must also pay for any damage that customers have suffered as a result of cyber attack. Your company is responsible if you lose third-party data. In addition, companies can not legally withhold information on cyber attacks public. This means that companies must inform all customers affected by a cyber attack. Companies must apologize to their customers and employees, too
Here are some costs associated with dealing with a cyber attack.
- Notifications customer Your company is legally and morally obliged to alert the public and your customers when you have experienced a cyber attack. Depending on the size of your business, which can easily cost over $ 100,000
- Interruption :. If you need to close your business for any amount of time, you lose revenue.
- Credit Protection :. If a cyber attack puts the personal information of your customers at risk, you are responsible and must pay for credit monitoring services
- investigations If not not immediately clear how the cyber attack affects your business and customers, you need to pay specialists to investigate
- Cyber extortion :. If a hacker has your business information hostage, you might have to pay to get the
- crisis management :. business confidence is lost after a cyber attack. There are PR costs associated with managing your business reputation.
Companies must win back customer confidence after a cyber attack
Customers do not like to be informed that their identity or credit card information is risk due to a cyber attack on your business. However, they still hate most when you are not ready to cope with the effects. Mp Chang China Bistro recently investigated a possible violation data from customer credit cards began to appear on the carding sites. Guests enjoyed their quick reaction.
The companies buy cyber insurance because customers want them to have. Cyber attacks harm the reputation of a company and help save cyber insurance. Identity protection is important for customers, it should be important to your business, too. People are particularly concerned about their credit card and bank account. With that in mind, if your business suffers a cyber attack, you can earn back the trust of your customers being prepared.
Buy Cyber insurance increasingly easy
Cyber insurance has been around for over a decade. However, companies were often reluctant to buy because the application process was too complicated. The process was full of jargon, and it was difficult to determine what was covered and what was not. Now, cyber insurance is much simpler and the application process is also simplified as other insurance policy applications. Underwriters may even give you a quote estimate before applying with only a general understanding of the value and income of your website in mind.
Cyber insurance is important for both large and small companies. The list of large companies that have been affected is the growth year after year, and it includes big names such as Neiman Marcus, Home Depot, Michaels, and others. In addition to taking the necessary security measures to protect your business, it may be a good idea to get a cyber insurance to help you pay the consequences if your business is attacked.
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