What is Cyber Insurance?
With cybercrime becoming a major threat to businesses across the world, irrespective of their size, cyber insurance is fast becoming a necessity, more a need than a choice. However, the concept of cyber insurance is still fairly new, and not many SMBs are aware of its benefits. Cyber insurance covers your liability in the event of your business becoming a victim of cybercrime. For example, a data breach puts you at risk of lawsuits. In addition, it makes you liable to your customers and other parties if their data becomes compromised via your organization. This type of insurance covers the financial aspect of such liabilities, making it easier for you to deal with them.
Why Do You Need Cyber Insurance?
Many organizations think of cyber insurance as an added cost. They believe they don’t need it for various reasons. Bigger organizations believe their IT security measures are watertight and they won’t fall victim to cybercrime. They also tend to think that even if they are affected in a one-off cybercrime case, they are solid enough to discharge their liabilities and come out of the incident with their brand value intact. SMBs, on the other hand, think cybercriminals are most likely to target the bigger players, and they don’t need insurance. But, in reality, it is the smaller businesses that are at a greater threat–primarily because:
The bottom line is, every organization–big or small, needs cyber insurance today. However, its important to remember that it is not a replacement for cybersecurity. Having this type of insurance doesn’t mean you can be lax about cybersecurity. Instead, intend it as a buffer to help your business survive when something slips through the cracks. Wahaya IT can help you tighten your cybersecurity and prevent data breaches and other untoward incidents. Also, being well-versed in the IT industry, Wahaya IT can help you understand the IT risks you need to cover.
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