Despite the number of cyber breaches that have occurred over the past five years or so, many companies continue to forgo the need for cyber insurance to protect their businesses. Many see it as an unneeded expense. Others think their practices are enough to keep hackers away.
Most people think that hackers are at it 24/7 looking for ways to get into your systems. In reality, they aren’t trying to force themselves in. These hackers are looking to get you to let them in yourself. According to Verizon’s recent report,[1] the two biggest sources of cyber breaches were phishing, where they use personal identifiable information (PIN) to trick you and the second is stolen credentials, or stealing your passwords to hack their way into your network.
Cyber Liability in the broadest sense is when any of your PIN information is vulnerable to a breach. This insurance helps with the payouts in the event that your company is breach and to help with the various costs associated with a breach. These include coaching, forensics, damage and even new equipment if the issue was severe.[2]
The best reason to get Cyber Insurance is to protect your business from possible threats. It is inevitable that a cyber-attack will happen, it’s just a matter of when it will happen. Acquiring such insurance will allow some safety in regard to paying for the damages. Overall, vigilance and training will make sure you don’t have to use it.
[1] https://enterprise.verizon.com/resources/reports/dbir/
[2] https://insurancenewsnet.com/innarticle/why-business-owners-should-care-about-cyber-liability-insurance#.XRDer3dFwdV