What Is Cyber Insurance and Do You Really Need It?
Cybercrime seems to be growing every year and so it is only natural that cyber insurance is becoming an increasingly growing topic among cybersecurity experts and companies that are targeted. Data breaches, Denial of Service attacks, and other threatening acts against organizations can not only ruin their reputation or freeze operation, but also result in a substantial monetary loss. Therefore, in addition to trying to stop cyber attacks, some companies take extra precaution by investing in cyber insurance in case they fail to prevent such attacks. Further, in this blog post, we will explain to you what it is and how it might save the company from significant losses. At the end of the article, we will also discuss if it is worth investing in such a product as well as how to prevent cyber attacks.
What is cyber insurance?
Like health insurance helps people cover their health expenses when they, for example, get into car accidents, cyber insurance helps companies cover losses they might receive in case of a cyber attack. For example, the insurance can cover losses gained because of data destruction, denial of service attacks, extortion, hacking, and so on. Probably, the most significant advantage of having such insurance is it can help the organization recover much faster compared to companies that would have to find ways to cover substantial losses by themselves. No doubt, knowing the organization will not have to endure a huge financial loss would soften the blow during a cyber attack.
Do you need cyber insurance?
Obviously, this product is oriented at various organizations that could lose a lot of money or face ruin in case of a cyber attack. For average computer users, the best insurance is having a backup on a removable media device or cloud storage. All you have to do is back up valuable or sensitive files regularly, so that, in case of an emergency, you could quickly recover them.
Naturally, before deciding whether the company needs cyber insurance, it is essential to determine how much could be lost during different cyber attacks. Also, it is necessary to evaluate how sensitive the data handled by the organization is and how attractive it might be to hackers. It is important to remember it does not matter if the organization is big or small as anyone could become victims of cybercrime. Thus, as there are a lot of different factors to consider, there is no straightforward answer whether an organization should or should not purchase cyber insurance. We would recommend considering it if you believe the attack could nearly ruin your business or cause huge damage. Additionally, we would advise taking extra precautions that could help prevent cyber attacks against your organization.
How to prevent cyber attacks?
The first step in preventing cyber attacks is understanding how they occur. For instance, a lot of them start with phishing emails. Usually, such emails try to trick the user to open an attached file, which could be a virus or some other malicious application. The threat might be designed to ruin or steal data located on the device, connect to the organization's network, and so on. There are various tactics to convince targeted victims to open such data, for example, quite recently, some hackers attacked multiple hotels, restaurants, and other similar organizations by pretending to be their customers and sending emails with fake receipts. For more information on how cyber attacks occur, you could continue reading here.
Furthermore, many cyber attacks succeed because of the mistakes done by the targeted company's employees. Therefore, one of the primary keys in stopping them is to educate people working in the organization. Employees should understand how important it is to regularly update the computer's operating system or other software used for work to remove weaknesses that could be exploited, for example, to gain control over the device. Next, it is crucial to use strong passwords cybercriminals would find difficult or ideally impossible to hack. Plus, employees should be advised to back up the data they work with; in case it got encrypted or ruined. Besides, it would be best to have your employees install reliable antimalware tools as well as teach them how to identify possibly dangerous data.
What's more, the company should identify possible threats - like unauthorized access or loss of sensitive data - and work on how to prevent them. Additionally, it would be smart to be cautious about other cyber attacks that are new or in your opinion less likely to occur in your organization so that you would be prepared for anything. If the company does not have people that could detect the organization's weak points, it would be a good idea to ask help from cybersecurity consultants or hire a team that would handle cybersecurity issues. Another important safety measure is making sure no one could access most sensitive company's data without authorization. To achieve this, it is essential to track how employees obtain or work with such information and whether they do so with caution. For example, access to sensitive data or the organization's system should be permitted only from the company's devices because the computers or mobile phones belonging to employees could be vulnerable to various threats.
In conclusion, since cyber insurance can only minimize loses, it may not be what you need if you are looking to help prevent cyber attacks or if you are an ordinary user. Nonetheless, it could be a savior to organizations who deal with sensitive data and are at high risk of being targeted by hackers.