As cyber-attacks grow yearly, more and more businesses ask, “Is Cyber Insurance worth it?” Yes, if your business is at risk of hacking, data breaches, and computer fraud. While there are benefits to purchasing cyber security insurance, the coverage is mostly new and untested, leaving many buyers variables.
What Is Cyber Insurance?
Cyber insurance is a coverage that protects companies against losses caused by cyber-attacks. Cyber insurers provide various kinds of coverage, including cyber extortion, first-party, and third-party. In addition, some cyber insurance companies offer add-ons like crime policies, which cover workplace theft and devices.
Who Needs Cyber Insurance?
Any business using the Internet or computers can benefit from cyber insurance. However, a business is vulnerable to cyberattacks when it:
- Accepts payments online
- Transfers documents electronically
- Communicates with customers online
- Accepts in-store credit card transactions
- Stores personal information electronically.
What Does Cyber Insurance Cover?
A cyber insurance policy covers the basics of cyberattack recovery, including but not limited to:
- Media liability
- Errors and omissions
- Network security and privacy
- Network business interruptions
When searching for cyber insurance companies, check the insurer and their policies to determine what they cover and do not.
Where Can I Buy Cyber Insurance?
You can get cyber insurance from some companies that provide errors and omissions insurance, commercial property insurance, and commercial liability insurance.