DAB Global - Blog
Cyber Insurance
Cybersecurity insurance, also known as cyber liability insurance, is a type of insurance product that is available to help reduce the financial risks associated with doing business online. It operates similar to other insurance policies which evaluates risk and measures coverage and; premiums according to each type of environment.
Cybersecurity insurance is a new and emerging industry. It protects your business from the cost of cyber threats or breaches involving computer systems and data. That can include sensitive customer information, such as credit card numbers, Social Security Numbers (SSNs), account numbers, health records and driver’s license numbers.
Unlike well-established insurance plans, underwriters of cybersecurity insurance policies have limited data to formulate risk models to determine insurance policy coverages, rates and premiums. The problem that most companies face is in determining how much cyber insurance they need. But, it’s difficult for insurers to understand demand when the buyers themselves are still trying to figure out and value their exposure and how much they really want to spend on it.
Who needs cyber insurance?
Any business that creates, stores and manages electronic data online – such as customer contacts, customer sales, credit card numbers or any such Personal Identifiable Information (PII) – can benefit from cyber insurance. In addition, e-commerce businesses can benefit from cyber insurance, as downtime related to cyber incidents can incur severe losses in sales and customers. Similarly, any business that stores customer information on a website can benefit from the liability coverage that cyber insurance policies provide.al assistance, investigators, crisis communicators, and customer credits or refunds.
Traditional insurance policies typically exclude cyber-risks, and this has led to the growth of cybersecurity insurance as a separate, stand-alone type of coverage. Potential customers include any company that accepts digital payments or stores PII about customers, including medical and financial information.
What does it cover?
Cyber insurance policies help cover the financial losses that result from cyber events and incidents. In addition, cyber-risk coverage helps with the costs associated with remediation.
These can include meeting extortion demands from a ransomware attack, notifying customers when a security breach has occurred, paying legal fees resulting from privacy violation lawsuits, hiring specialists to recover compromised data, recovering data that has been stolen and repairing or replacing damaged or compromised computer systems. It can also include lost income because of network outages, regulatory fines and public relations costs to restore your company’s reputation after a data breach.
What it doesn’t cover?
Many cybersecurity policies exclude preventable security issues caused by humans, such as poor configuration management or the careless mishandling of digital assets. It doesn’t cover preexisting cyber events, such as incidents that occurred before the policy was purchased, cyber events initiated and caused by employees or insiders, infrastructure failures not caused by a purposeful cyber-attack, failure to correct a known (unpatched) vulnerability and the cost to improve technology systems, or costs for improving security in systems or applications.
Should I spend the money on high Cyberinsurance premiums? Or just invest in good cybersecurity?
DAB Global believes that all businesses should be insured against the typical risks in its individual operating environment, but that doesn’t mean that because you have insurance, you neglect the foundational strengths of Business Continuity Planning (BCP). Having a robust and well-implemented Cybersecurity program gives you significant but not total protection. Hence, in the unlikely event that a breach does occur, cyber insurance can help your business bounce back.
For example, you may get house Insurance for hurricane and fire, but does that mean you won’t check that your roof and windows are secured in the event of a storm warning? Or that you won’t practice periodic fire safety with your family with an evacuation plan?
Similarly, a strong Network Security System with appropriate monitoring, support and back up is critical for securing your data and mitigating risks of attack. And similarly, when the Insurance Company assesses that you have specific measures in place to reduce risk (a security system on your house/ car/ fire detection units/ hurricane proof windows/ defensive driving course), your premiums become lower, since the risk assessment is lower.
In short, DAB Global Technologies can guide you through setting up an appropriate level of cybersecurity for your specific business and engage in uninterrupted monitoring to provide peace of mind to your Business.
About Us
DAB is a global leader in cybersecurity services and technologies.