Is there any amount of how much cybersecurity insurance you should need? If ever there is an average on it, how much is it? Also, what are the advantages of having cybersecurity insurance?
All of these will be answered in this section.
What Is Cybersecurity Insurance?
Cybersecurity insurance is a type of insurance that pertains to cyber attacks. It is very similar to other types of insurance like health insurance, car insurance, and house insurance.
Simply put, it is a kind of security that safeguards your company’s system from cyber attacks. It helps prevent them from happening, as well as handles the aftermath if there are any.
It is also very important because most businesses today rely on the internet to function. 90% of the world’s companies have an online presence today.
So it’s not surprising that almost 70% of these businesses have been targeted with at least one type of cyberattack in their lifetime.
But what makes cybersecurity insurance so important? After all, many businesses are still surviving even without any cybersecurity protection.
Well then, let’s first talk about what damages or losses are incurred by a business when they get attacked by a hacker.
3 Important Costs Of A Cyberattack To A Business
Cost 1: The Business Can Get Sued Or Face Criminal Charges
Cyberattacks aren’t always harmless pranks that can be laughed off easily. Many times they can be very harmful and even illegal to the business being attacked.
This is especially true for big companies that deal with confidential information every day. This information can sometimes include sensitive personal data like social security numbers, credit card numbers, and so on.
As such, companies need to know that they won’t be held liable for any damage done by a cyber attack. Otherwise, it would mean trouble for their business reputation and finances!
Cost 2: The Business Can Be Blacklisted By Customers And Partnerships
The best way for customers to protect themselves against cyberattacks is to find out whether or not a company is secure enough or not. To protect their private information.
This means that if a company has already been involved in a cyberattack incident then their customers may stop doing business with them. It is because they do not feel safe with them anymore.
This also means that partnerships and collaborations will get cut off as well. You never want this to happen because it can kill your business right then and there.
It doesn’t matter how much you have invested, how long you’ve been in business, or how good your products are – once customers lose.
Cost 3: The Business Can Lose Valuable Information
Lastly, and probably one of the most important costs of a cyberattack is the loss of valuable information. This can include things like critical data like customer data, financials, and intellectual property.
This is because these kinds of information are very sensitive to a business. And if a hacker steals it, then it can be very harmful to both your reputation and finances.
But it doesn’t matter how much you have invested, how long you’ve been in business, or how good your products are. Once customers lose faith in you because of a cyberattack, then your business is all but dead.
This is why cybersecurity insurance is so important!