Should You Get Cybersecurity Insurance?

by | Jan 11, 2024 | Cybersecurity, INSI Articles

What is Cybersecurity Insurance?

Cybersecurity Insurance goes by many 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 aftermath of a cyber attack.  

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 Personally 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 it is generally considered a breach if the data stolen reveals two or more PII that connect back to a single individual. A severe breach is when more than 500 individuals are affected. 

Do Breach Notification Laws Affect My Business?

If your business stores, transfers, or has access to PII, the answer is a resounding “yes.” Since 2003, states have slowly rolled out data security breach notification laws to safeguard businesses and individuals against data breaches and help them mitigate the risk of identity theft, fraud, and impersonation. Naturally, these laws incentivize your company to strengthen your data security or face monetary penalties, negative publicity, class action lawsuits, personal lawsuits, and, ultimately, loss of clients’ confidence. To learn more about your state’s breaching notification laws click here

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 only worth getting a cybersecurity insurance policy if you transfer, store, or access PII and have performed a risk assessment on you network. 

INSI Can Help You Qualify for Cybersecurity Insurance

INSI performs two types of risk assessments: regulated and supply chain. Regulated industries include healthcare, insurance, banking, accounting, and any company that processes credit cards. Alternatively, we also provide supply chain risk assessment for any company that stores, transfers, or accesses PII on behalf of their customers. Click the link below if you would like to know more. 

About INSI: The Best MSP in Atlanta!

Innovative Network Systems, Inc. has a unique approach to integrating IT support and cybersecurity. Our month-to-month programs range from basic support to proactive support, managed support, and customized support. Each program is tailored to the client’s needs and internal IT strengths.  

For more information about cybersecurity dangers and the preventative measures for your company, connect with the top MSP in Atlanta; Contact INSI: 770-387-2424, option 2 or click the link below. In addition, we offer 16 different cybersecurity programs to protect you and your data.

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 want to be notified when a new article is posted, click here.

To make an appointment for more information about INSI and our Marietta and Atlanta metro IT Support services, click here.