In this day and age, it’s hard to find a company that wouldn’t benefit from cyber insurance. These policies are an effective way to reduce your risk from social engineering attacks or hackers targeting your company.
In a 2019 report, 61% of businesses surveyed reported they had experienced some kind of cyberattack. Without cyber insurance, the fallout could be massive, as the average cost for a corporate data breach has reached an average of $3.92 million. Some industries that deal with sensitive data have even mandated cyber insurance as an operating requirement under regulations like HIPAA and PCI DSS.
If you’ve ever struggled to figure out exactly how cyber insurance works, you’re not alone.
What is Cyber Insurance?
Cyber insurance is separate from regular operational insurance which protects you from unfortunate accidents and incidents like hardware theft, fires or floods. This specialized insurance kicks in if your system is targeted by a hacker and can be a smart investment to help minimize the business risk associated with a data breach or ransomware attack.
Losing data, especially if it’s sensitive customer data, is something we’ve seen play out in the media many times in the last few years. Cyber insurance helps you budget for lost productivity, litigation fees and even to pay a ransom.
If a regulatory body has oversight over your business, cyber insurance may be an absolute necessity to operate within the law.
What Do I Need to Consider Before Purchasing Cyber Insurance?
It’s not difficult to understand the the importance of cyber insurance. If your business is plugged in, or if you keep information digitally on behalf of clients, it’s a necessity in 2019. The real challenge is understanding what best insurance option for your business.
Managed Services Providers (MSPs) do not typically offer this product, but they should be your first point of contact for helping you define your risk. You may even be able to reduce your monthly premiums if you already have an MSP on board.
How to Structure Your IT Infrastructure Assurance
In addition to cyber insurance, considering IT infrastructure assurance is a critical step in protecting the online assets of your business. Your MSP can help you determine your IT vulnerabilities and how they can be protected in the event of a social engineering attack. Without detailed knowledge of this infrastructure and its potential weaknesses, you’ll be putting your business continuity plans at risk if you were ever to be hit by a malicious data breach.
This knowledge may seem overwhelming if you don’t have a technical background, but that’s where your MSP comes in. They should be able to walk you through your system’s vulnerability points and help you with employee training to ensure that your system is safe from human error.
Rely on Network Tech for Better Cybersecurity
A true partner in cybersecurity will offer guidance on the best cyber insurance packages that protect your business and the customer data that you’ve been entrusted with. A combination of cyber insurance and IT infrastructure assurance gives business owners peace of mind so they can focus on the aspects of their business benefitting the most from their expertise.
At Network Tech, we’re committed to working with businesses to educate them on what they need to know and handling all the rest. Some of the services we provide to clients include:
- Accurate, up-to-date antivirus reports
- Automated reports on system status
- Vulnerability scanning
- Establishment of IT committees
- Managing social engineering educational campaigns for employees
Call Network Tech today for a complete cyber checkup. This detailed diagnostic assessment assures you that your business is operating at maximum efficiency. If we don’t think you’re working with the maximum protection available, we’ll help you get there.