Most modern businesses rely on technology in order to meet their clients’ needs and operate at their best. But participating in the digital landscape can put businesses at risk from cyberattacks; no one business is immune, and it can happen when you least expect it. How do you protect your business from suffering from financial risks related to these cyberattacks? There are two ways: a strong security posture and coverage when you need it the most. That’s where cybersecurity insurance comes into play.
An emerging industry, cybersecurity insurance is a form of insurance that can help mitigate the financial risks of a cyberattack. Like your everyday car insurance, you can pay a monthly fee and the policy purchased can help relieve some of that risk to the insurer.
You’ve realized that cybersecurity insurance sounds like a potential fit for your business needs, but you aren’t too sure where to start. Have no fear – let’s take a deeper look into what is covered and the various insuring agreements that cybersecurity insurance has to offer.
Five Insuring Agreements and What They Mean to You
- Network Security: For those companies who are subject to information and privacy risks, network security coverage is a beneficial agreement to look into. This aspect of cybersecurity insurance coverage will help protect your business if your network security fails. This can include data breaches, malware infection, ransomware, and other related cyberthreats.
- Privacy Liability: Like network security, privacy liability coverage is beneficial for companies who store a lot of private information and are subject to privacy risk. Employee and customer information can be sensitive to violations and breaches, which could potentially expose and threaten your business’s reputation. This aspect of cybersecurity insurance coverage can help protect your company from any breach involving the leak of sensitive information like financial or medical records.
- Network Business Interruption: Would you say that your business is dependent on technology? Network business interruption offers companies protection against operational cyber risk, whether from failed software patches or security failures like third-party hacks.
- Media Liability: Not many companies think of media liability as a needed coverage. However, this form of cybersecurity insurance coverage allows for the protection of intellectual property infringement.
- Errors & Omissions: One of the most popular forms of cybersecurity insurance coverage, E&O addresses the event of a cyberattack that could keep you from fulfilling your contractual obligation to your customer. In the result of a claim of negligence, you can rest assured that E&O can include legal defense costs or provide compensation to a disgruntled customer.
You Know the Basics of Cybersecurity Insurance…What Now?
Cybersecurity insurance can help provide your business with a little extra protection, but are your cybersecurity solutions in a good place to qualify for coverage? Here at Universal Data, our team is ready to help you make sure your cybersecurity processes, standards, and plans are in top shape. If a cyberattack does occur, you can rest assured that you are protected. Talk to a specialist today to learn more about how our services can help bolster your cybersecurity solutions. Let’s get you on track to a better tomorrow.
Looking to learn more about cybersecurity insurance and other cyber tips? Check out more of our blogs in our resources section.