Cyber insurance is a type of policy that protects your business and activities against problems arising from online activity. Demand for this relatively new kind of insurance is growing dramatically. The reason for the growth in this sector is increased online business and employees that have access to digital data. Nowadays, everyone has their own screen and are responsible for emails, websites and more. The opportunity for hackers and other digital criminals has never been higher.
Did you know that the main targets for cyber crime are small to medium sized companies with fewer than 250 staff? This is because they generally lack the capacity of their own dedicated IT departments. You are an easy target! Outsourcing tech or relying on commonly bought firewalls can make it easy for hackers to cause havoc. The average cost of dealing with a cyber attack is $250k, which can be enough to collapse a small but growing company.
What does Cyber Insurance Cover?
There are very strict national and global laws around the privacy and protection of personal data. Even something as simple and innocent as a staff member sending an email to the wrong person creates liability. When you consider the recent increase in the number of people working from home, this compounds the problem. People accessing your business systems remotely with their own firewalls, VPNs and cyber set-ups can weaken your security.
Losing a customer's phone number, address, birthday or credit card information can cause all sorts of problems. Trust can be completely lost and identities can be stolen. Your liability for keeping your customers information safe extends to personal and financial safety.
What happens when you get hacked?
For a start, your business is immediately interrupted. Viruses spread like wildfire. Emails get shared quickly and therefore easily spread malicious content. When hacked or targeted with malware, you need to take immediate action. Most people aren't in business in order to think about technology. Most people aren't tech experts and their computer activity is a means to an end. You need it to do your job.