2020 has forced everyone to operate digitally, and that’s why the usage of cybersecurity is very important in this day and age. Here are a few reasons why cyber insurance can help protect your money, data, and business.
As more and more businesses are undergoing digital transformations, working remotely, and operating solely through the internet, an increase in cyber threats and cyberattacks have been recorded over the past few years. Cyber threats and attacks are usually not detectable until after they happen which is why they can cause huge damage to systems and software. To safely protect and secure data, finances, and employee information, cyber insurance is essential.
P&S Intelligence has reported that the global insurance of cyber market revenue will be expected result in it reaching the level of $70,671.9 million approaching the year of 2030, proving how valuable insurance for online activity is in the business world’s digitally fueled future. A year like 2020 has shown many companies and business leaders that it’s best to be prepared for the unexpected. Cyber insurance will protect victims from monetary losses due to the corruption of malware, ransomware, and distributed denial of service attacks.
Individuals and companies aren’t the only ones becoming victims of cybercrime. Governments, who now implement laws that encourage company owners to invest in cybersecurity also experience cyber attacks. Since most cyberattacks revolve around money retrieving, banking records, or insurance, larger companies are often the most common users of insurance for online activity.
As so much consumer financial data filed digitally and the future of business progressing hand-in-hand with the advancements of the digital age, cyber insurance couldn’t be more important. Here’s how it can benefit you.
Cyber Insurance Will Protect Your Company
Digital apps, iPhones, the internet, Zoom, also company-wide operations can all become victims of attacks online. Due to this cyber insurance is just as important as insurance for healthcare. It will protect your data. If a serious breach occurs, you may not have the resources on hand to combat these issues or recuperate the money lost, but having insurance to cover yourself will take care of this.
Types of Coverage You’ll Receive With Cyber Insurance
Typically, insurance for online activity will cover most unexpected losses, whether it’s of monetary value or prosecution claims. Most plans can also offer coverage for physical damage to hardware or coverage for monetary loss. If your business or company is looking for customized plans, many providers are happy to customize their cybersecurity as well. As a complement to cybersecurity, your insurance will be the safest way to mitigate any damage made from a breach or attack.
Types of Cyber Attacks
Identity Theft: Identity theft is the unauthorized access to using, deleting, and altering any forms of data retrieved from personal devices like PCs, laptops or cell phones. This cybersecurity attack often seeks out individuals, but thanks to insurance coverage, you’ll be able to retrieve defence costs as a result of any claim by the affected party as well as prosecution costs against the third party. Transportation to court and expenses such as photocopying of documents can also be covered under identity theft insurance.
Social Media: Due to many people having personal social media accounts, cyberattacks via social media tend to happen more often. However customized insurance plans will allow victims to access the benefits of defence and prosecution costs against identity theft occurring through your social media accounts. Similar to identity theft insurance, these plans will also cover defence and prosecution claims on account of your social media account being compromised.
Malware Attack: Malware attacks on digital systems can be the most dangerous, as they often happen unauthorised and without the victim being aware. Spread through SMS, internet downloads, clicked links, and file transfers, malware attacks are often damaging and malicious. Insurance plans for this will cover the restoration costs of your computer system, as well as defence and prosecution costs. This form of a backup can be the most beneficial for companies as you’ll be covered in the cost for recovery of lost data.
IT Theft: IT Theft occurs when payments are made without a party’s authorization or knowledge. These insurance plans can cover the financial losses from the results of these attacks. Coverage includes defence and prosecution costs, as well as the recovery of your financial losses. Investing in this type of insurance can also help your company keep its funds and financial access safe and secure.
Whether you’re an individual entrepreneur who operates their business online, or the leader of a major company with data systems located across the country, buying insurance for online activities is possibly the safest thing you can do for your business. From targeted email attacks to breachings of entire software systems, it’s easier to purchase a cyber insurance plan that protects you rather than lose money over situations for which you were never prepared. Insurance plans for online activity will help prevent these unexpected losses, and investing in is a very beneficial way to take care of your business.