5 Reasons To Get Your Business Cyber Insurance
Most companies purchase general liability insurance to protect themselves from potential lawsuits or claims resulting from accidents, injuries or negligence. They purchase professional liability insurance to protect themselves against the cost of errors, malpractice or negligence in services provided to their customers. So, why don’t more companies purchase cyber insurance to protect themselves against claims arising from cyber incidents?
Here are 6 reasons your organisation should seriously consider Cyber Insurance ….
Data breaches are costly - The average consolidated cost of a data breach in 2016 was $4 million, according to the Ponemon Institute’s 2017 Cost of Data Breach Study.
Cyber incidents happen. A lot. - Nearly two-thirds of SMEs have been the victim of a cyber incident, according to the same study.
Coverage works, most of the time. Almost 9 in 10 SMEs say their cyber insurance covered the cyber security incidents they suffered.
Cyber insurance customers are happy customers - Companies with cyber insurance are pleased with their policies, with 87 percent of SMEs reporting that their policy performed as expected.
Uninsured companies believe they are well-protected - The No. 1 reason for not purchasing a policy is the belief that in-house security people and processes provide all the needed protection. Cyber incidents are a fundamental fact of life – it’s not a question of if a data breach will happen but when. Even the NSA got hacked.
It’s risk management, plain and simple - With any security breach there will be three types of impact - financial, reputational and regulatory. While insurance won’t help reputationally and there are serious questions in the industry as to whether you can insure against GDPR fines, cyber insurance will minimises and transfer the risk financially. It is therefore purely a financial decision.
Questions your C-Suite should ask your CISO – Do we have Cyber Insurance? Have we ever used it?