What is Cybersecurity Insurance?
Cybersecurity Insurance goes by many different names; cyber insurance, ransomware insurance, cyber risk insurance, cyber breach insurance, and cyber liability insurance. In general, these insurance liability policies help protect business owners from the effects of cyberattacks and hacking threats.
Do I need Cybersecurity Insurance?
In the past, cybersecurity insurance was heavily purchased by healthcare and technology companies. However, it is advised that any business that transacts Personal Identifiable Information (PII) over the Internet needs cybersecurity insurance. Examples of PII include:
- Credit and Debit Cards
- Bank Account and Routing Numbers
- Social Security Numbers
- Medical Records
- Contact Information
The list of PII goes on and on, but generally speaking, it is considered a breach if the data stolen reveals two or more PII that connects back to a single individual. A serious breach is when more than 500 individuals are affected, which have resulted in most states instituting breach notifications laws to protect their citizens.
How Does Cybersecurity Insurance Protect My Business?
Cybersecurity insurance does not protect you from getting breached, rather it minimizes the disruption to the business after a fallout by addressing, resolving, and helping you recover from an attack. However, you cannot shift all the responsibilities of a breach to the insurance company. If you want protection against getting breached in the first place, you should perform a risk assessment based on your industry or risks.
A Cybersecurity Insurance Plan Only Covers Your:
- Written and Implemented Network Security and Privacy Plans
- Media Liability
- Errors and Omissions
- Network Business Interruptions
It should be noted that it is not worth getting a cybersecurity insurance policy if you have not performed a risk assessment because they cannot be held liable for something you did not do. Therefore, it is important to get the appropriate risk assessment performed if you transfer, store, or access PII.
INSI’s Custom Risk Assessment Program
Do you need a custom risk assessment performed? INSI’s turnkey risk assessments not only identify your vulnerabilities but also address them. Contact one of our risk assessment specialists 770-387-2424, option 2 to find out which program is best for you.
About the Author
Deborah Frazier is the author of IT Outsourcing Secrets – A Small Business Guide to Compare IT Support Companies. With nearly 20 years of experience consulting small and medium-sized businesses on their IT support needs, she brings a wealth of knowledge to INSI as Head of Marketing and Sales. If you like this article and would like to get notified when a new article is posted, click here.
