Do You Need Cyber Insurance?

Imagine that your business has suffered from a virus, data breach, or any other type of cybercrime. You may be thinking that such accidents are rare, but you never know when something like that can happen to you.

In fact, cybers attacks are more frequent than you could suspect. Hacking attempts take place every 39 seconds, and their main targets are small businesses. Almost 65% of companies have experienced such a situation. But there is a guide to help small businesses with efficient cybersecurity tips as well as provide helpful resources and other pertinent information. And, if you’re still wondering if you need cyber insurance, the answer is very straightforward – yes, you do! In this article, we will provide you with information about what it is and why it is worth having it.

What is cyber insurance?

Let’s assume that the attack has already happened, and your company was hurt with it. If that’s the case, but you have cyber insurance, there is a chance that the insurer will cover the amount of money you lost because of the cyberattack, data break, or any other type of cyber damage.

However, the fact that you are insured doesn’t automatically mean that you can stop taking care of cybersecurity. It’s exactly the opposite – your only chance to get losses covered is when the insurance company sees that you did everything you could to prevent data loss.

It often happens that businesses start neglecting cyber dangers once they get insurance. And if that’s the case, then you won’t be paid for the damage! So, treat this solution as the extra protection layer, and, with such an approach, this expense is very worth the money.

What type of cyber-attacks should you pay special attention to?

As we mentioned before, it’s good to have cyber insurance, but you still have to watch out for the dangers of the Internet. There are many different attack types. While some of them can be simply annoying, some are very dangerous and can cause you massive trouble and substantial financial losses. It’s essential to use anti-virus programs, but it’s not all you should be doing. There’s plenty of cybersecurity IT companies, for example, Ntiva, Cisco, or McAfee, that can improve your security level.

Recommended reading: How to Protect Business Data

But, what threats are the most dangerous for your business? We’ve prepared a list of the most harmful ones:

Data breaches

It’s unintentional (and sometimes sadly intentional) release of confidential information to somebody who should not have access to it. It can happen because of information disclosure, but oftentimes it’s a planned, organized attack. That’s why it’s so crucial to have appropriate protection layers, but also to train your staff to be careful while they are at work.

Ransomware

Very malicious type of malware. Once your company becomes a victim of such an attack, hackers will ask for a ransom to not publish the stolen data. They can also block your access to it so that your company workflow is pretty much stopped. It’s one of the most severe cybercrimes that can quickly destroy smaller businesses. Make sure that you use good cybersecurity antimalware software, as well as security policy, that will reduce the risk of this nasty e-threat.

Social engineering

It’s the fastest-growing cyberattack type that happens on a daily basis. Its name might be a little confusing, but the idea behind it is straightforward – it’s an attempt to manipulate people so that they give confidential information. Make sure that you never provide confidential information, especially if the person demands it urgently. The authorization process is very crucial. Oftentimes, somebody else might indeed need the data, but it’s essential to eliminate the risk of giving it out to unauthorized people. It’s better to lose more time on the verification process than recover from the losses that such an attack might cause.

Unfortunately, cybercrime has become a real issue. Your data is valuable, and that’s why you should make sure that it’s very well protected. If possible, use multiple protection layers, so even if somebody is able to overcome one, they still have to bypass more. Once you have excellent protection, but you still are afraid of data loss and other types of cyberattacks, it’s good to have cyber insurance. It’s a guarantee that you are financially safe, even after becoming a target of an organized cyber-attack.