Now more than ever, cyber insurance is a critical investment. Our business IT systems are ever-more reliant on cloud computing, remote working and multiple-device solutions, which means an ever-widening door for cybercriminals and opportunity for ‘cyber crises’ to occur.
Now, that’s not to say cloud computing and remote work capabilities should be reconsidered. Absolutely not! The benefits of highly innovative and insightful connected business IT systems far outweigh the risks. However, there are steps you can and should take to manage those risk. The simplest and fastest way is to take out cyber insurance.
So, what exactly is cyber insurance for?
It helps to think of cyber risk in the same way you would regular risk. You insure your business against property damage, theft and natural disasters, so you should do the same in the digital world when it comes to network interruption, hacking and data loss.
With increased security breaches, cyber insurance is becoming more commonplace – it’s no longer only used by big multinational corporations. Even small and medium businesses can be targets of cybercrime, and all businesses of any size are vulnerable to data loss and network failure. Just like other forms of insurance, cyber insurance can help you recuperate and recover from unexpected losses.
The way we see it, there are three main reasons to take out cyber insurance.
1 – It can protect you against serious risk
There are so many cyber risks to contend with, it’s not viable to be 100% self-protected against all of them. Cyber insurance can protect you from the worst outcomes if you’re hit by these events and many more:
- Data loss
- Liability for data loss
- Network interruption
- Network security breach
- Cyber extortion
- Human error leading to business interruption
- Liability for confidential data disclosure
2 – It can save you money in the long run
Cyber insurance is a cost your business will need to bear – but there’s also massive cost involved if you’re not covered. Some data breaches can have regulatory and legal consequences – say, if you were found liable for leaked confidential client data. If you haven’t fulfilled your obligation to uphold a secure IT environment for your clients or customers, it could be a very costly oversight. On top of that, there are all the costs associated with data recovery, business interruption and even cyber ransoms.
The good news is, your insurer will be just as motivated to help you build a secure environment as you are – it’s in their best interest that you’re not vulnerable to attack, after all! The more compliant you are with cybersecurity regulation, the lower your premium could be. That’s how good compliance can save you money in the long run
3 – It’s getting harder not to have cyber insurance
Some businesses won’t actually partner with an organisation that doesn’t have adequate cyber security procedures in place. This is particularly true in heavy-hitting companies and government sectors – they simply can’t risk their data in unsafe places. It’s becoming increasingly difficult to function in the business world without a safe, secure and well-insured digital environment, which is a massive driver for getting yours in tip-top shape.
Luckily, Xenex can help you do it!
While we don’t offer cyber insurance, we can help you lower your potential premiums by providing a secure environment that lowers your risk factor.
Book in today for a FREE digital audit – or browse our Audit & Review services here.