How To Determine How Much Cyber Security Business Insurance You Need

Insurance Blog

Protecting your customers and your own company from a digital security breach is essential, but even with a robust security infrastructure, some hackers may be able to breach your database or gain access to a social media account. The only way to be truly protected from such an event is to purchase cyber security insurance. Then, even if your security measures fail, you will be reimbursed for the damages that result. But navigating this form of insurance can be challenging unless you know what to look for.

Find Out What Your General Liability Insurance Covers

General liability insurance covers some of the costs associated with a security breach, but do not cover everything. If your business is in the medical, hospitality or retail sector, you likely have unique risks due to the access you have to your customer's data. Before shopping for cyber security insurance, find out how much your general business insurance policy covers you in order to know where the gaps exist.

Ask For Technical Information To Be Broken Down

One of the challenges of shopping for cyber insurance is that it can be easy to become confused over specific jargon. You might be asked if you are concerned with experiencing a security breach and agree. But then, when technical concepts are communicated to you, it can be difficult to understand them and determine whether a particular cyber insurance policy is right for you. Make sure that the provider explains concepts without using highly technical jargon and persistently ask questions until you understand the policy. Ask about the specific problems that you would like to solve.

Understand Your Risk

Be aware of the risk that your company is exposed to. Do you carry sensitive consumer data? Are you concerned with having your company's proprietary information stolen? Communicate these concerns to your insurance provider so they can direct you toward the services that will be the most likely to help.

Consult With All Of Your Departments

Make sure that the managers in each department are involved in the purchasing of cyber security insurance. Different departments face different security threats and you may not be aware of a unique concern, especially if you are running a medium or large business.

You may need a stand-alone policy for the interruption of business due to cyber attacks, investigative costs, credit monitoring or lost or damaged data. For instance, if hackers are able to bring down a critical website used to make transactions, you may need an insurance policy to cover the transactions you would have otherwise made. By considering each risk, your company will be fully covered. Contact a company like Affordable Insurance for more information. 


23 January 2016