Our world has become increasingly interconnected, and as such we have seen inclusions of technology in aspects of what we do every day. Whether that’s doing an online purchase, booking an appointment with our doctor through a virtual office, or taking part in a digital course. If we are an individual or a business owner who manages data or relies on digital platforms on any level, there may be the risk of a cyber incident. The consequences of a cyber incident, both for a business and for an individual and their family, can be tremendous. Considering this constantly evolving landscape, the concept of “cyber insurance” has since emerged as vital protection – both for individuals and businesses.
The proliferation of cyber threats has resulted in a transformation of cybersecurity, once from a mere concern for IT departs to a critical aspect of risk management. Cyber threats can exist on any scale, from a single identity theft situation in your household to an exposure of datasets from a social media platform like Facebook – the one in April 2019 impacted over 500 million users.
Cybersecurity and preventative measures, both at home and at work, play a critical role in the mitigation of cyber risks, but they cannot offer fully impenetrable protection against threats as they evolve. Cyber insurance is an additional layer of defense (and shouldn’t replace cybersecurity!) and can offer your business or household with financial protection and guidance in the aftermath of an incident.
Here’s why you should consider buying cyber insurance.
Safeguarding Your Digital Assets, Both Personal & Business
Cyber insurance exists in two forms: one, in its most popular form, cyber insurance can be designed to protect businesses from digital threats. Where technology permeates virtually every aspect of our lives, insurers have started to roll out smaller cyber packages designed specifically for households.
Cyber Insurance for Businesses
For businesses that use data or technology on virtually any level, cyber insurance is part of a proactive risk management strategy, one that demonstrates a commitment to safeguarding sensitive information and digital assets. The presence of cyber insurance can go a long way to building trust amongst stakeholders, partners, and customers, as it highlights a certain dedication to data privacy and security. As an added, cyber insurance may also allow businesses to meet compliance regulations – since many industries are now faced with regulations imposed by data protection bodies – and can shield them from potential legal consequences.
Cyber Insurance for Households
Households and individuals may also benefit from having cyber insurance. Personal cyber insurance provides individuals with financial protection and support if an identity theft event should ever occur, mitigating the risk that any online scams, digital fraud, etc., should cost them financially. This insurance coverage can protect an individual or household from legal expenses, assistance in reclaiming stolen identities, credit monitoring services, and more. It serves to note while identity theft insurance is not the same as an individual cyber insurance policy, both can help protect you at home.
The Benefits of Comprehensive Cyber Insurance in Protecting Your Household and Organization
Cyber insurance presents many benefits that are critical for protecting both businesses and households as they face the potential of evolving cyber threats. Let’s look at the specific advantages that having cyber insurance brings to the table:
- Incident Response and Recovery: Having a robust cyber insurance policy means you may be provided with access to a network of cybersecurity experts and incident response teams. Having their guidance is critical in investigating an accident, containing damage, and recovery critical systems and data. Expert assistance may ensure a swift and effective response.
- Financial Protection: Cyber insurance offers financial coverage in the event a cyber event should occur, mitigating potentially substantial costs that could occur with a breach. Businesses may receive coverage for expenses like forensic investigations, notification of customers, and legal fees, where households might receive coverage more for costs related to identity theft, fraudulent financial transactions, and legal assistance.
- Regulatory and Legal Support: Legal requirements and data protection regulations encompassing cyber incidents have continued to evolve and become progressively more stringent. Cyber insurance helps support businesses through the navigation of a complex legal landscape, helping to cover legal expenses and offers access to legal experts who might specialize in all things “cyber law.”
- Reputation Management: For businesses especially, a cyber incident can tremendously impact their reputation and credibility. Cyber insurance can often include coverage for public relations and reputation management services. These services can go on to mitigate reputational damage by assisting with communication strategies, addressing public perception, and implementing effective crisis management plans.
- Peace of Mind: Cyber events can be devastating, so there’s no overlooking the benefit of having peace of mind for both households and businesses that there is fallback in case of an event. Having cyber insurance may greatly reduce the anxiety associated with the potential for a cyber threat which, in this world, is increasingly ever-prevalent. Having peace of mind allows businesses to focus on innovation and growth, and allows individuals to engage in online activities without needing to constantly. Worry.
Vago’s Cyber Risk Insurance
Vago offers protection for businesses to combat the potentially devastating consequences of a cyberattack with our Cyber Risk Insurance for businesses. In the digital age of today, cyberattacks are increasingly larger threats. With a team of experienced underwriters on your side, you can get a custom policy that meets your business’ unique needs, which then allows you to operate freely – and with confidence that you have a backup plan if anything occurs.
Click below to read our Cyber Risk page for more information on our current offerings, or give us a call to discuss your business’ cyber needs today.
