With more transactions occurring on the Internet than ever, there are also more opportunities for hackers to gain control of your information, data, or even money. Cyber risk insurance takes away a lot of anxiety with online transactions before you’re protected if a security breach or other event occurs. Each policy is different, but many include coverage of forensic investigation, business losses, lawsuits and extortion, and privacy and notification.
Any company or organization that collects online payment information, uses the cloud, or maintains customer information should consider the option of this insurance type. As more and more devices connect to the Internet, there are increasing chances that a malicious individual will try to get their hands on your assets. Both small and large businesses can be targeted, as over 30% of phishing attacks occurring in 2015 were launched on companies with only 250 customers or less.
Cyber risk insurance will cover both first and third-party claims, but liability insurance only covers damage to property. Both are important, but each has its own set of advantages. The first step toward moving forward is to create a cyber risk profile customized for your business. Then take down a list of expenses that you wish to be covered if something happens. From there, you can start to look for insurance companies that offer what you need.