Why Cyber Insurance is a must-have!
What’s spookier than this month? A stolen identity! The insurance company, Oswald came out with a recent report urging companies to adopt better insurance policies for their cybersecurity practices. In just a year—from May 2024 to May 2025, 59% of businesses have fallen victim to cyber and ransomware attacks, and with there being over 500 million cyberattacks a day, it’s absolutely crucial to consider or reconsider your cybersecurity insurance.
Hackers infiltrating your business’s personal, client, and financial data that could lead to a halt in operations, loss of income, and in extreme cases, permanent closure.
Think about the risks you’d be putting your business at if you left this unattended. Hackers infiltrating your business’s personal, client, and financial data that could lead to a halt in operations, loss of income, and in extreme cases, permanent closure. Want to prevent that from happening? Consider the following when adopting cyber insurance:
What are the most effective strategies in cyber insurance?
The first is having a ‘total record count’, which handles the personal records of your staff, finances, and business. Specifically, it covers personally identifiable information, payment card information, and personal health information.
Contract values – which is finding out and understanding the financial aspect of a client and vendor’s contract. Both vendor and client contracts can demand a lot and challenge the limits an organization has for so many customer contracts.
Competitors’ insights – Look into what other companies use as insurance. Peer benchmarking is a useful tool to understand the requirements, but keep in mind theirs may differ from yours. Take the time to consider and compare their policies to yours to fully grasp what works best for your business and employees.
Cyber business interruption - note how your business income was impacted and any extra expenses incurred if your organization suffers a cyber incident or cyber system failure. Property policies typically only provide coverage for a physical business interruption.
Dependent business interruption - are your vendors covered? How much are you spending to cover raw materials if they fail to deliver – consider how heavily your business relies on those vendors and if you have enough raw material coverage if something goes awry.
Yeah, we know that’s a lot to keep track of. But what’s also a lot are the costs of ransomware extortion. Is poor insurance worth the bigger price you’ll end u[p paying to satisfy hackers? Is it worth potentially losing your business? We didn’t think so.
We know, not another insurance policy to pay! But, just like business liability insurance, cybersecurity insurance is now a must-have.
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Source:
No organization is safe from a cyberattack | Crain's Cleveland Business
