Whether your business operates a website, online store, or simply stores data on a network, you need to consider the dangers of a cyber attack. Hackers are continuing to refine their skills, developing new ways of infiltrating and exploiting online systems and data. Your business needs to utilize tools to keep your systems and data secure. You also need to consider protecting your business with cyber insurance.
What is Cyber Insurance?
Cyber insurance is a type of business insurance that protects against financial losses associated with cyberattacks and risks related to the company’s online activities and electronically stored data. The frequency and severity of online criminal activity, such as data breaches and ransomware, makes cyber insurance critical for businesses with an online presence.
Cyber Insurance Buying Tips
Cyber insurance used to be a simple sign-up process. However, insurance companies are becoming wary of losses and requiring businesses to have more cyber protections in place to be eligible for cyber insurance. Here are some helpful cyber insurance buying tips.
Evaluate your Cyber Risks – Before you talk to a cyber insurance agent, thoroughly review your organization’s operations to identify any potential risks related to online sales, customer databases, confidential data storage, or patent-protected applications. When doing this review, keep in mind any requirements or laws related to your business type. Medical, financial, insurance, and other industries will have extra requirements based on the sensitive data they maintain.
Study Your Options – As with any insurance policy, you’ll want to shop for the best policy. Agents at Jankowski Agency Inc can help you review the options that will best protect your company if you have a breach.
Ask Questions – Ask as many questions as needed to know which policy is best for you. Taking the time to sift through all the details can make a difference.
What Does We Need to Qualify for Cyber Insurance?
Years ago, applying for cyber insurance was as easy as filling in your company’s name, number of employees, revenue, and whether or not you had a website. Today, there are more requirements for business insurance coverage. Insurance companies require you have various protections in place for your electronic systems and data.
- Passwords – Multi-factor authentication (MFA) makes accessing sensitive data more difficult by requiring users to prove their identity using multiple factors.
- Data backups – Backups help you recover business operations in the event that your network is compromised. Ensuring these backups are offline and tested is often necessary.
- Proactive management – Various types of network vulnerability testing are available and often required as a part of the insurance application process. Many insurance companies require this ongoing testing be performed on a regular basis.
- Real-time cyber detection and response – Networks and devices should have real-time monitoring to detect cyber incidents and identify possible breaches as quickly as possible.
- Security awareness training – One of the most common methods hackers use to gain access to systems is by tricking employees into providing access or passwords. Keeping all employees aware of cyber security risks is therefore a key part of keeping a system safe. Insurance companies will want to ensure your company has a vigorous security awareness training program in place for its employees.
Use These Cyber Insurance Buying Tips to Help Get Coverage
Cyber insurance can help you recover quickly from losses sustained by downtime, business interruption, data restoration, and the reputational damage caused by a data breach. Our agents are available and ready to assist you with any questions or concerns you may have regarding a new cyber policy or your eligibility for coverage.
Ref: https://www.insuranceneighbor.com/navigating-cyber-insurance-in-2025/