With every business integrating technology, cyber insurance is needed to protect data and customers in the digital age.
The Trump administration recently took the final step of its small business insurance policy proposal. President Trump signed an executive order in October 2017 that included the proposed cheaper health insurance policies for small businesses and independent contractors. The law was developed with the aim of providing alternatives to the Affordable Care Act. Depending on the terms of the policy, small businesses can band together based on their location or the area in which they operate, to purchase health insurance for the business. Labor Secretary Alexander Acosta commented on the new community health plans saying they offer more choice, more access and more coverage. Something as important as insurance should be easy on all of these factors:
- the choice to select an appropriate plan,
- the ease of claiming procedures and documentation, and finally,
- coverage that provides financial support for anyone, major or minor, to an insurer.
Additionally, for businesses that are unpredictable when it comes to tax risks, insurance plays an important role in strengthening the game plan and mitigating losses that can arise in a typical business setup. Traditional insurance plans work well with traditional businesses limiting the use of technology to contact their customers through monthly emails and newsletters. But, for a digital business that relies heavily on the World Wide Web, the current scenario calls for the need for cyber insurance.
The long and short of cyberinsurance
Conventional commercial insurance plans help a business deal with “normal” problems that arise in the course of operating a business, including property damage, legal liability, and employee risks. Such coverage was good until our businesses were operating in solid brick and stone walls with minimal technical involvement. Times, however, have changed. Today, the term “digital business” is very common and the internet is home to several established digital businesses every day.
Cyber insurance is part of the family of insurance specializing in risks related to the daily management of the Web. The World Wide Web is vast, but it is also haunted by many digital passives. For Internet-based businesses, cyber insurance helps mitigate the damage caused by Internet-related risks. These risks are generally not defined in conventional insurance policies for businesses and include risks such as data loss or theft, hacking, denial of service attacks and losses caused by the business to its customers. clients. For example, cyber insurance offers repair services for and against cyber investigations, business loans, web privacy, digital lawsuits and extortion.
Types of cyber insurance
Like conventional insurance, cyber insurance offers protection for digital businesses at different levels. Some of the common forms of cyber insurance we have today are:
Insurance is offered against cyber attacks and hacking into computer systems, servers and databases.
Theft and fraud
Insurance is offered against the theft of data on a network or to mitigate losses caused by transactions on a fraudulent link.
Insurance is offered to cover all technical, legal or forensic services required to investigate the causes and culprits of a cyber attack.
Insurance is offered in cases where a business owner is unable to conduct business due to a network breach or other cyber disruption.
Insurance is offered to policyholders or business owners to cover any threat of a potential cyber attack that could expose relevant sensitive information to the open.
Insurance is offered against attacks that could defame a business organization.
Loss and restoration of computer data
Insurance is offered against all forms of data loss, misplacement, recovery and reconstruction in the event of a cyberattack affecting either hardware or software or both in a system.
The need for cyber insurance in a business
In 2011, Sony’s PlayStation was the victim of a hack that cost the gaming mogul a severe blow of $ 171 million. Analysts commented, saying the company could have avoided such a tax debacle if it had gone for cyber insurance, which offers protection against such attacks, unlike general liability insurance. The company not only faced a financial crisis after the accident, but also aroused some distrust from its customers.
Stéphane Nappo, Global Head of Information Security for Société Générale International Banking & Financial Services, says: “It takes 20 years to build a reputation and a few minutes of (a) cyber incident to ruin it.
Any organization that stores business and customer databases online, uses data obtained from online sources, maintains relationships with customers and customers via a digital link, or relies on payment portals online for money transactions risks a cyberattack and should consider insurance to build a protection mechanism against the fickle network that is the World Wide Web.
Large organizations employ teams dedicated entirely to IT networking and security management. Small businesses, on the other hand, live with the impression that they are nestled in the Internet’s blind spots. However, this is not true. All kinds of businesses are now facing a growing threat of cyber attacks. A report from Symantec Intelligence claims that more than 30% of phishing attacks are launched in organizations with less than 250 employees. In addition, nearly 43% of cyber attacks target small organizations. For large organizations, these statistics show significant losses for companies that are victims of a cyber attack. The Center for Strategic and International Studies has joined forcesthe annual loss to the global economy would be in the order of $ 375 billion to $ 575 billion from cybercrime attacks alone.
Considering all of these factors, a business embarking on technology applications must have cyber insurance. As mentioned above, the insurance policy works, keeping in mind the different forms of cyberattacks and can be customized according to the needs of an organization. In short, cyber insurance not only helps a business mitigate cybercrime, but also minimizes unnecessary expense related to business process disruption, security reviews, and customer concessions.
Cyber insurance is the need of the hour for any business today. All businesses deploying websites, mobile apps and online convenience services for their customers and clients leave a digital footprint with every activity they perform on this invisible network. General liability insurance doesn’t pay much attention to your web-based cloud servers that contain valuable data. This is where cyber insurance comes in. Cyber insurance policies overcome the backlog of modern insurance coverage needs and compensate for all kinds of cybercrime activity, while providing the necessary resources to minimize a breach. security to ensure the optimal success of your digital business.