Running a business is full of challenges. Customers can delay payment for services rendered, equipment can break down at the worst possible moment, and entire product lines can be recalled. Thankfully, business insurance exists to help companies when they run into obstacles that affect their bottom line. By protecting company assets, staff and mitigating risk of lawsuits, business insurance is truly an invaluable resource for organizations of all sizes and industries.
Equally important - especially in today's digital world - is cyber insurance. Malicious hackers are more skilled and resourceful than ever before, and they're constantly targeting businesses with lax cybersecurity, as they're easy to breach and usually rife with data that can be ransomed or sold on the black market. Any company that uses mobile technology, engages with external partners or vendors, accepts credit cards or other forms of online payment, or stores confidential customer, partner or other digital information should consider themselves vulnerable to a cybersecurity attack.
Just like business insurance, cyber insurance exists to provide essential financial padding when things go wrong. However selecting an appropriate cyber insurance policy can seem like a complex task. For instance, there are crucial differences between first-party and third-party cyber insurance. First-party coverage only covers immediate response costs associated with a data breach for losses to the policyholder, while third-party coverage covers policyholders from claims brought by third parties such as customers and clients.
To select the most comprehensive yet affordable plan for your business, it's critical to first identify who is accessing your confidential data and how they're accessing it, as this information will largely dictate how your cyber insurance policy is outlined.
To read the full article head to Security Magazine.