Beginner’s Guide to Cyber Insurance
Posted: Nov 26, 2020
Everyday, we always depend on the internet to accomplish our usual tasks such as paying bills, online shopping and entertainment options. We also give out our personal information such as name, payments, passwords and anything else that is considered as sensitive data.
When you are using the internet, you expect it to be flawless and not have to deal with any major issues. However, the internet is considered to be one of the most dangerous places ever. It has one of the biggest issues that happens on a daily basis and that is data breaches.
Data breaches is a fancier way of someone hacking in your system or a virus being put in your system.
Data breaches have become way too common both in personal and business use. Apparently, businesses are the most affected with data breaches.
Not only does data breaches affect multinational companies but also in small and medium sized businesses. A data breach can not only damage your business but also your reputation.
There is a specific insurance that will ensure that your business is covered in the event of a data breach. The insurance is called cyber protection insurance
What does cyber insurance mean?
This insurance will generally cover the business’ liability from any data breach that involves sensitive and private information like credit card numbers, bank accounts, government issued identification card information and health records.
Cyber insurance helps notify customers of any potential data breaches, restore the personal identities of the customers who were affected by a data breach and recover precious data and finally repair any kind of computer system.
Cyber insurance vs. cyber security:
You might be wondering if cyber insurance is equivalent to cyber security like anti-virus software. Unfortunately, it is not true. They are two completely different subjects of matter.
Cyber insurance is not a replacement to cyber security. Cyber insurance handles major situations that have resulted from data breaches. The insurance will cover the financial aspect of restoring your business, dealing with any potential lawsuits from your customers and reclaiming your identity.
Cyber security is simply used to prevent any major technical issue from happening such as data breaches or cyber attacks. Cyber security is used for consumers to use the internet in the safest way possible. You do not have to worry about the dangers of the internet anymore.
Why do you need cyber insurance?
If your business has their own website or any form of electronic record, then it is easy to hack them and create either a cyber attack or data breach. Any kind of business information that is proven to be highly confidential could potentially be leaked out to the general public.
Not only could a cyber attack lead to a financial disaster, but it can also threaten your intellectual property and put your customer’s personal information in danger. This is known as damage to your business’ reputation.
Based on the information provided above, it sounds frightening that you could be a potential victim in a cyber attack. If you want to live a peaceful life especially in the digital world, then you should make the right choice.