What is Cyber Security Insurance? Is it really required?

Cyber security insurance provides protection to individuals & businesses from Internet-based attacks and risks. It is gaining popularity among enterprises due to the financial benefits after any kind of data loss due to a malware attack. Some of the types of coverage provided by insurance companies include hacking, extortion, data theft and denial of service attack.

Companies those opt for Cyber Security Insurance

1. Online retailers
2. Financial, credit and banking institutions
3. Health care providers and hospitals
4. Educational institutions
5. Social service organizations
6. Technology companies
7. Manufacturers and supply chain services

Choosing a Cyber Security Insurance

If you are planning to purchase an insurance policy, you need to make a thorough research and decide the company of repute. Carefully check the benefits, the insurance policy is offering before purchasing the same. Insurance providers generally make a complete cyber security assessment and security audit checklist before offering the policy. They often suggest companies applying for insurance to make necessary upgradation in the cyber security infrastructure before offering the coverage.

Cost of Cyber Security Insurance

Cyber Security does not cost same for all organizations as there are many elements included in it and based on the risks covered, the premium may vary.

Alternatives to Expensive Cyber Security Insurance

Cyber security insurance may cost you a hefty sum of money, which can put an additional cost burden. Rather than investing huge amount on insurance, it’s better to safeguard your basic cyber security and only take limited benefits of cyber security insurance if you find that’s useful. This way you will not end up paying high premiums.

Tips for Strong Cyber Security for Entrepreneurs

• Keep your network security software updated
• Use a VPN system
• Encourage your employees to keep strong password for their official accounts
• Use Two-factor authentication for your servers
• Conduct anti-phishing trainings for your employees