What Your Cybersecurity Insurance Policy Should Look Like In 2020
According to a 2007 study, a hacking attempt is made every 39 seconds. Businesses operating in 2020 are faced with multiple cybersecurity threats, ranging from malware to ransomware and phishing attempts. Therefore, having some form of coverage for potential hacks is critical.
Cybersecurity insurance is a combination of products and services that help you avoid many different types of risk. This coverage could minimize the financial setbacks of data breaches, along with providing appropriate resources for businesses that need to fulfill regulatory obligations.
Cyber insurance policies are evolving solutions that will vary depending on the nature of your operations. Here are some of the features you should look for when shopping around for coverage.
Information on emergent risks
While the essential part of cyber insurance is the coverage provided against data threats, these policies also help you keep up with emerging risks. Hackers frequently develop more effective ways of penetrating company systems. If you don't keep up with these new hacking attempts, your infrastructure may become outdated and exposed to risk.
Cyber insurance companies help you understand the continuously evolving cyber environment while providing targeted solutions against hackers. This makes it easier for your business to maintain updated systems, security patches, and firewalls that can detect/prevent hacking attempts.
Customized solutions for your industry
Every industry faces unique cybersecurity challenges. For example, financial institutions deal with many phishing attempts that try to deceive employees into providing access to restricted systems. Healthcare personnel, on the other hand, deal with malware and ransomware attacks that attempt to seize the personal health records of patients.
You should look for a cyber insurance policy that addresses your most critical concerns. The plan should provide coverage for threats that are most likely to affect your business, including leaked data, data loss, and lack of access to infrastructure caused by ransomware. Some insurers cushion your business against financial loss, a damaged reputation, and the downtime resulting from lost data. Such customized solutions will get your company back up and running soon after a hack is experienced.
Assistance with cybersecurity regulations
Compliance is a critical part of data security. Your business may need to meet various types of data regulations, including HIPAA, CCPA, and GDPR. Cyber insurance policies help you establish a framework for continuous compliance by examining daily operations, carrying out independent audits, and providing coverage against different types of threats. Some insurers also help you establish integrated solutions that protect your network and detect threats before they affect data security.
To learn more about your insurance options, contact an insurance agency.