The data of internet users is never free from risk. According to research, a cyber-attack takes place every 39 seconds. The situation is alarming because, in this digital age, almost 95 percent of the global population depends on the internet for wrapping up various tasks.
Even efficient management of a business these days requires a stable internet connection. Companies use software; collect user’s data which is easily accessible to hackers in case of a data breach. The procedure of rectifying the data is expensive. Due to this reason, cyber insurance is essential for contemporary businesses.
What is a Web Security Insurance Policy?
It’s an agreement between a business and an insurance policy company. Businesses purchase such a policy to reduce the financial risk against data breaches. According to the agreement, the insurance company covers the cost of data-recovering and malicious attacks.
Who Needs Web Security Insurance?
Every business that sells services, goods online sends and collects user’s data needs this specific insurance. Companies pay quarterly or yearly fees for such policies. In exchange for the price, the insurance company provides financial support associated with data remediation. In addition, it also covers the cost of legal liabilities, refunds, and investigators.
What Does the Policy Cover?
Many companies offer these policies at different prices, and they provide additional coverage. In a nutshell, the advantages of the policy vary from one company to another. However, the following are some basic sets of scenarios that are covered in almost all such policies.
The Basic Coverage Details
It covers the expenses of a data breach, malware attacks, legal costs.
- The company is responsible for notifying the customers in case of cyber-attacks.
- The company will hire experts to recover the stolen data.
- It will also cover the costs by repairing or replacing the damaged computers.
- The company will compensate for the loss of profit during the cyber attack.
Things that Cyber Policy don’t Cover
- The cyber insurance company is only responsible for the damage from the day the insurance policy was purchased.
- It doesn’t cover the physical deterioration of the company.
- The insurance company is not accountable for the data breach caused by an insider.
Key Elements One Should Consider While Buying a Cyber Policy
As mentioned above, the coverage of cyber insurance policies varies from company to company. The advantages of policies may increase or decrease depending on the company and the price of the policy. Hence, it’s imperative to look for a cyber policy that covers the following expenses.
- Choose a policy that offers the expenses to notify users and hire a forensic team.
- It bears the legal liabilities related to cyber-attacks.
- It should provide credit compensation for users and cover company profit loss in case of data breaches.
- The policy should compensate for computer damage.
One needs to remember that all businesses are at risk for data security, and no expert can guarantee the same. So, good cyber insurance is essential for companies, and one should consider getting one at the earliest!