Cyber insurance has gradually become a must-have for today’s remote businesses. Industries across the world are turning towards cyber insurance to cover damages against supply chains, enhance the protection of customer data and to ensure employee data is secure.
Just recently, cyber security leaders across finance, technology, and insurance industries met at the White House to announce cyber security initiatives. Breaches targeting the public sector grew nearly 78% between 2020 and 2021.
Small businesses are especially at risk of hacking and phishing attempts, while many large to enterprise size companies may have security protocols built into processes. Carriers should aim to develop policy coverage tailored to all sizes of businesses, making insurance for cyber attacks more accessible to companies at risk.
Why is Cyber Insurance Important?
The United States has the highest average total cost of $9.05 million per data breach compared to the average global cost of $4.24 million. Businesses with data breaches carry a high burden to resolve and control damages caused by breaches, calling for unique insurance to cover these costs.
What does a cyber insurance policy cover?
Cyber insurance covers liability against a wide range of sensitive data breaches. Information such as social security numbers and credit card information are often saved by companies for their employees and ecommerce customers. When this information is compromised through a business, the business may be liable for damages.
Cyber attacks may also compromise health records, leading to complex damages against the individual and an investigation by the business to identify responsibility to cover damages. Industries may require coverage for damaged equipment, revenue losses while systems are compromised, and public relations support following the data breach.
What is cyber insurance and how does it work?
Cyber insurance offers reimbursement to cover expenses related to data breaches. For example, most credit card companies today offer notifications to their customers in the case of a data breach, and many offer credit monitoring and communication services to follow up with customers affected. The costs to manage damage after the breach can be covered by cyber insurance.
Individuals affected by the data breach may also seek legal counsel and companies may need to complete digital forensics to identify the location and manner of the breach. Cyber insurance can cover these areas as well.
WaterStreet Company & Cyber Insurance
WaterStreet Company offers Policy Administration Solutions for carriers to develop and deploy new products, expanding your client base and offering innovative coverage plans. Talk to us today about your interest in expanding coverage for cyber insurance.
Ready to Take Action?
Reach out to WaterStreet Company today to request a consultation and demo.