With the increasing digital presence of organisations and individuals, the internet has become ubiquitous and must-have for everyone. The internet has replaced the traditional ways of conducting business and reaching out to the masses. Moreover, the number of transactions carried over the internet have increased leaps and bounds. This puts everyone, who is either the sender or receiver of money at the risk of frauds and theft.
Not only financial transactions, but also reputations of organisations are at stake. To protect from these various growing concerns, it is crucial to have a cyber insurance policy.
What is cyber insurance?
A cyber insurance policy protects the business entities and individuals from any financial losses that may arise pertaining to a data breach or other activities involving information technology. The concept of cyber insurance began to hold its prominence since the early 2000s when the internet began to spread to different parts of the world. Since cyber-attacks have no fixed geographic location, it is more difficult to trace and that further makes it crucial to have a safety net.
How to evaluate your cyber insurance coverage requirements?
Evaluation of the right cyber insurance coverage has the following steps:
#1 Evaluate the level of risk
Evaluation of the risk is critical. Every organisation should assume they are targeted and avail cyber insurance cover. Butfew organisations handle sensitive data. These organisations need to specifically consider how much valuable their data is and obtain an appropriate level of cyber insurance.
#2 Evaluate your need
Once you determine the risk of cyber-attacks, analyse the technology you use and how vulnerable it is. Some technologies have more vulnerabilities than others. As an organisation, you need to evaluate your need and ensure there are no gaps in coverage.
#3 Determine your budget
Determine your budget as to how much can you expend on availing general insurance for your organisation’s cybersecurity. However, make sure you compare the various plans and not make the selection solely based on its price.
#4 Compare the various cyber insurance plans
Once the risk and needs are evaluated, you need to compare the various plans and make a suitable choice depending on the requirement. Cyber insurance coverage varies from one plan to another. Also, make sure you consider the sub-limits that apply for various events under your policy.
#5 Reconsider your cybersecurity strategy
After comparing the various plans and shortlisting a few suitable ones, it is necessary to reconsider your cybersecurity. Insurance plans cover specific events but are other events as well covered using some or the other protection techniques? These evaluations will help you redesign your cybersecurity to cover any gaps that are not covered by your insurance policy.
Those mentioned above are some of the policy requirements that you should look for when purchasing a cyber insurance policy. To conclude, almost all individuals entities have a digital footprint, and it is necessary to ensure adequate measures are taken to protect this data.