Exactly What is Cybersecurity Insurance? AND, Do I Really Need It?
At ITConnexx, Inc. we are all about security. We make every effort to protect our clients, and ourselves, from the bad actors in cyber space. We have Cybersecurity Insurance and almost all our clients do as well. It is important!
Cybersecurity insurance is a type of insurance that covers the financial losses and liabilities caused by cyberattacks and incidents. It can help businesses protect themselves from the costs and consequences of data breaches, system hacking, ransomware, and other cyber threats. Cybersecurity insurance is a good idea to have because:
● Cyberattacks are becoming more frequent and sophisticated, posing a serious risk to any business that relies on digital systems and data. According to a report by IBM, the average cost of a data breach in 2020 was $4.24 million, the highest in 17 years.
● Cybersecurity insurance can cover the expenses of investigating and resolving a cyber incident, such as hiring forensic experts, restoring data, paying ransom demands, and notifying customers. It can also reimburse the lost income due to business interruption and provide legal defense and settlement costs if a third party sues the business for damages.
● Cybersecurity insurance can provide access to expert guidance and support during a cyber crisis, such as incident response teams, public relations consultants, and regulatory compliance advisors. These services can help businesses minimize the impact and reputation damage of a cyberattack.
● Cybersecurity insurance can demonstrate to customers, partners, and regulators that the business takes cyber risk seriously and has taken steps to mitigate it. This can enhance the business's credibility and trustworthiness in the digital marketplace.
Cybersecurity insurance is not a substitute for implementing effective cybersecurity measures, such as using strong passwords, updating software, encrypting data, and training employees. However, it can complement these practices by providing an additional layer of protection and peace of mind in case of a cyberattack.
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