November 8, 2023
Cyber insurance is a crucial safeguard that can help protect your business from the financial fallout of a successful cyber-attack. Cyber risks are a major concern for companies of all sizes. Small and medium-sized businesses are not immune to the growing threat landscape, and no one can completely prevent attacks.
Cyber insurance, also known as cyber risk insurance or cybersecurity insurance, is designed to help protect businesses from major consequences of cyber incidents. These incidents can range from data breaches and ransomware attacks to distributed denial of service (DDoS) attacks and other cyber threats. For commercial businesses, understanding the need for cyber insurance has become paramount in ensuring their long-term viability and stability.
Huntress reported that as of January 2023, 27% of mid-sized businesses reported not having cyber insurance coverage, and 47% didn’t have an incident response plan.
The digital realm has given rise to a sophisticated and ever-evolving threat landscape. Cybercriminals are constantly devising new ways to breach cybersecurity measures, compromise sensitive data, and disrupt business operations. As a result, the risk of cyber incidents has multiplied, making it imperative for commercial businesses to stay vigilant and proactive in safeguarding their digital assets.
It’s essential to recognize the specific risks that commercial businesses face in the cyber domain. These risks can have significant consequences, such as:
Cyber insurance policies vary, but they generally cover the following:
Policies can be customized to meet the specific needs of each business.
The benefits of cyber insurance include:
To make the most of cyber insurance, businesses should conduct readiness assessments. These assessments evaluate the company’s cybersecurity posture and readiness to respond to cyber incidents.
Selecting the right cyber insurance policy requires careful consideration. Some key factors to weigh include:
Many industries have specific cybersecurity and data protection requirements that businesses must adhere to. Cyber insurance can help meet compliance obligations, offering protection in case of regulatory violations and penalties.
The questionnaire typically covers details about the company’s cybersecurity practices, policies, and risk management procedures. It’s crucial to provide accurate and comprehensive information, as inaccuracies or false statements may result in claims being denied. Follow the insurer’s instructions carefully and contact them if you need clarification.
Cyber insurance is a necessity. Business leaders are responsible for protecting their organizations against the potentially devastating consequences of cyberattacks. Cyber insurance offers financial security, business continuity, and peace of mind.
According to Huntress, 41% of mid-size organizations outsource their cybersecurity to a third-party vendor, and 61% don’t have dedicated cybersecurity experts in-house. Have you considered entrusting your cybersecurity to specialists? Read more about Dewpoint’s security services.
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Dewpoint, an award-winning, Michigan-based technology firm, has been helping businesses prepare for, stay ahead of, and respond to IT challenges for over 26 years. From IT security to infrastructure management to automation, cloud migration, and beyond, Dewpoint has long been a trusted technology resource for businesses.