Cybersecurity insurance is certainly an important piece of the puzzle. If the worst happens, it can help to cover significant financial losses thus limiting the damage to your company. Like with any type of insurance though, you really don’t want to be in a position to have to use it.
Your insurance should only be called upon if every other line in your defence has failed; so let’s make sure you’ve got your house in order.
It’s crucial to understand what your policy will and won’t cover. Most cyber insurance policies cover first party and third party financial and reputational costs relating to damage to, or loss of information from, IT systems and networks, caused by unauthorised IT system access; usually a breach or an attack.
Many policies include cover for the following:
Cyber insurance also generally includes significant assistance with and management of cyber incidents both before and after an incident has occurred.
However, with cyber attacks evolving constantly, there is a chance that the type of attack you may fall victim to isn’t covered by your policy. With this in mind, it’s important to make a regular review of your policy part of your overall cyber resilience policy and ensure that it covers you and your particular business needs adequately.
Having insurance doesn’t mean that you should be reckless with your security. Quite the opposite, espousing a culture of cyber resilience across your entire business will offer you the highest level of protection.
Before you can take out a policy, many insurers will need to see that you already have robust policies and protection in place. After all, insurance is the last line in your defence. Whilst cyber insurance can be a valuable component of an organisation's overall cybersecurity strategy, insurance should not be seen as a substitute for implementing robust cybersecurity measures but rather as a complement to them. Do not only limit yourself to meeting the minimum cyber security requirements specified by an insurer though as these might not adequately protect your business.
Here are a few general considerations and advice related to cyber insurance:
Book in a 1-2-1 call with Niomie to find out more.
Click to Open Code Editor