Do You Need Cyber Insurance?

When you think of the cyber world, you may associate it with the dangers out there. While you can take steps to be secure, such as education, training, and investing in state-of-the-art defences, the worst can inevitably happen sometimes.

So, if a disaster does strike, what can you do? One emerging way for companies to lighten the pressure on them is by purchasing cyber insurance.

What is Cyber Insurance?

Defined by insurance giant Allianz, cyber insurance is "flexible, simple and broad cover to ensure a company is fully protected in the event of a data breach or a cyber-security incident."

Best thought of as a form of coverage - cyber insurance can help cover the data recovery costs you could face when dealing with the aftermath of successful phishing or ransomware attacks.

Cyber insurance moves some of the costs to the insurer in exchange for a recurring monthly or quarterly fee. There are usually numerous policy options available, alongside optional add-ons for extra protection.

What Does Cyber Insurance Cover?

Now we've established what cyber insurance is and what it covers. Examples include:

• Data breaches following employee theft

• Data breaches following the loss of something physical, such as a memory stick

• Business interruption

• Denial of service attacks (DDoS)

• Data breaches following a successful hacking attempt

Who Needs Cyber Insurance?

Given the ever-changing nature of the internet and the threats out there, it could be argued that any organisation with a digital presence needs cyber insurance coverage.

A common misconception banded around is that their organisation may be too small to warrant paying out. However, as attacks occur every few seconds, those in the SME space are far from safe - meaning it's relevant to all organisations.

However, it's especially important if you're a business that handles:

• Personally identifiable information such as names or addresses

• Financial data

• A large customer database 

• Medical information

Do I Need Cyber Insurance?

More and more people are of the school of thought that you may need to invest in cyber insurance, whilst some continue to remain sceptical. With many brokers now offering some form of cyber insurance, it doesn't look to be going away any time soon - is it right for you?

If you're unsure, maybe it's time to turn to the experts and get advice to see if it fits your business.