How to Choose The Right Cybersecurity Insurance For Your Business?
According to cyber insurance statistics, the size of the cyber insurance market worldwide will grow from $8 billion in 2020 to $20 billion by 2025.
One of the main reasons behind the exponential increase was an uptick in pandemic induced cybersecurity attacks. As more and more businesses allowed their employees to work remotely, it gave hackers a great opportunity. They started targeting remote workers who are not protected so these remote workers became a soft target for hackers.
The number of cloud-based attacks targeting remote workers skyrocketed forcing businesses to take the enterprise cybersecurity of their remote workers seriously. They did not have any other choice but to opt for cybersecurity insurance. Unfortunately, choosing the right cybersecurity insurance is not easy especially with the number of different providers and various options it offers.
This can quickly become a confusing mess. To prevent businesses lead generation from this confusion, we have highlighted some of the key factors you should consider when choosing cybersecurity insurance. In this article, you will learn how you can choose the best cybersecurity insurance for your business.
Assess Your Risk Profile
What is the first thing that comes to your mind when you hear the word cyber risk? If you thought about cyberattacks targeting your sensitive personal information, you are not alone. Most people see cyber risk along the same lines. Sadly, cyberattacks can do much more than just that. It can also dent your brand reputation.
Create an inventory of all your assets and assess how vulnerable they are to cyberattacks. Identify potential threat sources irrespective of whether they are internal or external in nature. Evaluate the impact these attacks could have on your business. All this will go a long way in helping you assess your true cybersecurity risk. Once you figure out your risk, it will be much easier for you to decide which type of cyber insurance you should opt for. The better you understand your needs, the easier it will be for you to decide which option is best for you.
Understand Different Options
Cyber insurance comes in all shapes and sizes just like cheap dedicated server hosting. It is important for businesses to understand different types of cyber insurance and the pros and cons of each. This will help you decide which one is best to fulfil your specific security needs. Most cyber insurance policies can broadly be classified into two major types.
- General Liability Insurance
- Cyber Liability Insurance
It is important to understand the difference between the two. General liability insurance usually provides coverage from property damage or physical injury to your product, service or your business operations. Most general liability insurance also offers coverage from a few cybersecurity attacks. On the flipside, cyber liability insurance is tailor-made to provide extensive coverage against cybersecurity attacks.
If you want comprehensive cybersecurity coverage, you should definitely opt for cyber liability insurance. Meanwhile, if you want generic protection that covers everything then, general liability insurance is a better option. At the end of the day, it usually comes down to your needs.
Which Cyberattacks are Covered?
One of the most important things you should consider when choosing cyber insurance is what type of cyberattacks does it cover and which ones are not. Some cyber insurance is designed to protect you against ransomware attacks, while others are created with phishing attacks in mind. You can also find cyber insurance that offers protection against data breaches.
It is highly recommended that you choose cyber insurance that goes beyond cyber event coverage. In fact, your cyber insurance must cover all the spots that are vulnerable and are more likely to get targeted by cyber attackers. Think about the long term impact and how it will affect your business from a financial standpoint.
If a threat can have a long-lasting impact and can also damage you financially, it is important that your cyber insurance policy provides coverage against those attacks. In some cases, a cybersecurity incident can impact different functional units in your business. If you don’t have the right insurance coverage, it can easily bring your entire business to its knees.
Set the Right Expectations
One of the main reasons why people are not satisfied with their cyber insurance is because they don’t set the right expectations early on. They expect too much and when the provider fails to meet their expectations, it leaves a bad taste in their mouths. That is why it is important to set the right expectation early on so you don’t get disappointed.
When choosing a cyber insurance provider, inquire about the claim process, how quickly will they process your claim and how much time does it take to process the claim. Do check the quality and availability of the support so you don’t end up being left high and dry.
Custom Cyber Coverage
Let me clear one thing right off the bat. There is no one size fits all cyber insurance out there so you should not waste your time searching for it. It would be better if you try to find a cyber insurance policy that is tailor-made to fulfil your specific cybersecurity needs. Another thing that will influence your cyber insurance policy is the cyber hygiene and financial risk you carry. In addition to this, the security procedures you use for remote desktops, email gateways and software update policies all influence your cyber insurance policy. Even your cybersecurity training programs and incident response plan matter.
Find a Partner
Instead of hiring a cyber insurance provider on a temporary basis, you should look to form partnerships with them. Once they become your cybersecurity partner, they can do a much better job of keeping you safe and minimizing your claims as well as ensuring the business continues in case of a cybersecurity incident.
Here are a few reasons why you should form a partnership with your cyber insurance provider. They can offer you:
- Customized risk assessment
- Personalized steps to minimize the risks
- Premium support with round the clock experts availability
What factors do you consider when choosing cybersecurity insurance for your business? Share it with us in the comments section below.