Cyber insurance is designed to protect businesses from both online and offline cyber threats. It provides businesses with the vital support needed in a time of crisis to help mitigate the immediate effects of a cyber incident and to help a business back to its feet again.
Cyber risk is now accepted as a business risk. Whether you hold sensitive information (names, address or banking information) on your employees and clients or rely on computer systems to operate your business you are at risk of falling victim to a cyber incident.
Purchasing cyber insurance can demonstrate to clients and regulators that you are taking a robust approach to security and a mature approach to protecting your business. As cyber incidents become more prevalent, firms will be expected to have certain levels of protection in place and cyber insurance is a key component.
Cyber insurance and cyber security are very much complementary measures of a business’ cyber resilience. Neither one should be used in place of the other but rather applied in parallel to ensure the maximum protection.
Cyber incidents are not the preserve of financial institutions or large corporations. Increasingly small and medium size businesses are just as much at risk if not more so due to their often weaker cyber security and lower cyber awareness.