Cyber attacks are on the rise. There are vicious forms of malware that infect systems, rendering them useless, and requesting a ransom to regain the files. Some virus infections can spread throughout the network, disrupting normal business and making the user files vulnerable. A denial of service attack can cripple an entire Internet connection, bringing all business activity to a grinding halt.
Cyber Insurance has become a popular solution for those that have experienced these types of attacks. How can you determine if it is right for you?
Cyber insurance is not unlike any other type of insurance. It can cover significant costs that are incurred during a cyber incident such as loss of data, loss of equipment, manpower to bring the network back to functionality and cover legal costs. This does not mean that you should ignore all security controls. It is unlikely that you will be covered if you fail to meet basic security measures.
Cyber insurance can be quite costly. And it does not cover every single aspect of what a cyber incident could cause. You may experience reputational damage. There could be regulatory fines associated with the damage caused by data loss.
It is important to note that no one is infallible. Using due diligence in setting controls and solutions can go a long way to minimize your vulnerabilities to attack.
Make sure to have an incident response plan. This plan can be a life, money and time saver. By identifying the risks of your organization you can highly reduce your efforts of recovery.