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What is Cybersecurity Insurance, and Why is it Important?

Cybercrime is on the increase, the global pandemic accelerating the number and frequency of attacks. Most businesses have a plan for the cybersecurity of their organization, but there are trends that could lead to a higher risk of a breach. Remote working, for example, is especially vulnerable to cloud attacks. Even though you have security training in place and virus software, criminals are getting increasingly devious. An incredible 95 percent of cyber attacks are due to human error.

Just as important as the cybersecurity measures put in place is the cybersecurity policy you have for your business. Here’s why you need to get cybersecurity insurance.

What Is Cybersecurity Insurance?

A lot of things can happen when there is a cybersecurity breach that goes beyond the loss of data. There is business interruption, network damage, and even litigation and reputational damage. Cybersecurity insurance not only recommends several preventive measures that you as a business owner can take but insures against the damage and fallout from a cyber attack. Premium costs are based on how you score with a self-assessment on your company’s cybersecurity.

What Does Cybersecurity Insurance Cover?

The standard cybersecurity insurance covers accidental damage caused by a cyber attack on your business. It includes a loss to a business from interruption and the potential network damage and costs to repair the system. You can also get third-party cyber insurance if a business you work with is affected by a data breach that affects your company.

What it doesn’t cost is damage due to negligence. If, for example, you failed to get your staff trained in data security and a breach occurred; it is unlikely cyber insurance would cover you.

Why Does My Business Need Cybersecurity Insurance?

There are several very good reasons why your business needs to consider getting cybersecurity insurance. Firstly, cyber-crime is increasing with even more phishing scams, ransomware demands, and malware than ever before. It is a significant risk to a business causing damage to continuity, and income.

Since the global pandemic, a lot of business functions have shifted online which not only increases the vulnerability of your company to attack but raises the risk from cyber-crime to continuity. Most small business insurance policies do not cover cyber-attacks so you could be uncovered for this risk.

Finally, although you most probably ensure your staff are aware of the risks of hacking, cybercriminals are increasingly devious. It only takes one small human error to cause a major problem.

How Can Bethany Insurance Help?

Bethany insurance specializes in business and cybersecurity insurance policies. They can assess your needs and give you a self-assessment checklist so you fulfill the basic requirements to keep your business safe. Bethany provides first-party and third-party cyber insurance so you can choose the level of cover that suits the need of your company.

With more technology being used than ever before, and with half of the small businesses experiencing a problem with cybersecurity, getting insurance against the risk is a priority.

Reach out today to speak to our team of experts today so you can get the best plan for your business so you get the support you need and peace of mind.