The current technological landscape is burgeoning with opportunity and seemingly limitless innovations, but the threat of cyber attack has never been more real. A recent Xconomy.com article cites cyber incidents as the “No. 1 emerging risk for enterprises long-term…with cyber security insurance policy premiums approaching $2.75 billion a year…[anticipated to] grow to roughly $20 billion by 2025.”
While it’s tempting to assuage your fears and concerns with firewalls, IT monitoring services, and other such solutions, a cyber security insurance policy is an added necessity that provides coverage that protects the integrity of your business data and preserves your employees’ safety.
Do I Need Cyber Security Insurance?
In short, cyber security insurance provides an additional layer of protection for your business. Since cyber security insurance is a separate purchasing decision, business leaders must ensure the coverage aligns with actual needs.
What to Look For
One critical, but little-known, fact is that the majority of cyber security policies don’t actually cover socially-engineered attacks or those caused by human error. Succumbing to whaling/phishing attacks or accidentally downloading malicious files are common these days, and one wrong move could quite literally damage you and your business. The distress is exacerbated when you realize your coverage isn’t actually going to help you. Additionally, most policies don’t include adequate coverage for recovery measures and the accompanying expenses to get your business back up and running after a breach or cyberattack.
So, how do you make sure you have the right of coverage aligned to your specific needs? A cyber security insurance audit is the answer.
The Basics of a Cyber Security Insurance Audit
An audit of your organization’s cyber security policy reviews the details of your current policy(ies), and looks for instances where coverage is out of line with your specific needs and vulnerabilities. The process often includes:
Acknowledging the risk that cyberattacks pose to the integrity and future of your business is the first step. Proactively assess your specific situation and identify your key vulnerabilities for threats and malicious behaviors. Be sure you are armed with the top tools and knowledge to fight (and win) the cyberattack battle. Cyber security insurance is a must as long as you have the right coverage to suit your organization’s needs.
About the Author: Don Britton is the founder of network management solutions provider Network Alliance Inc. (www.networkalliance.com).