Things You Need To Know About Cyber Security Insurance
Things You Need To Know About Cyber Security Insurance: Gratitude to the advancements in technology, we can access our stored data from anywhere in the world and this in itself has allowed businesses to expand at a phenomenal rate. However, this has all made businesses sensitive to cyber attacks by hackers.
Investing in cyber security insurance is a smart move and before you invest in one, it is advised to go through a number of cyber security insurance policies.
What is Cyber Security Insurance?
Cyber security insurance is a type of insurance which provides coverage to any loss of data incurred as a result of a major hack or cyber security breach. Just like any other insurance, the main purpose of investing in this type of insurance is to ultimately protect your business assets. A number of different policies are available and it is best to buy the one that suits your needs and requirements.
Why is it So Important?
Every business is prone to a cyber attack. From a small-scale business to a big business, no business is immune from getting hacked. Though you may not give it a lot of importance, cyber security insurance is must for any business owner as it protects against malicious security breaches and protects the business interests. These breaches may result in loss of important business data, damage the reputation of the business, may lead to losing out on important business opportunities and in severe cases, may even lead to loss of employment.
The Types of Insurance Policies Available
Cyber security insurance policies are of two types and each one of them fully caters to your business needs. However, keep in mind that cyber security insurance doesn’t cover theft or damages incurred as a result of loss of business reputation or lower sales.
- First-party insurance is more suitable for business owners as it covers money loss occurring as a result of security breach, loss of data/ software and cyber extortion.
- Third-party insurance is for the third-party company who is managing the software for another company. This insurance covers the cost of lost customer data and information and any breach affecting employee confidentiality.
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