Cyber Insurance policies have been around since 1990; however, this type of coverage is needed more than ever due to an incline in security attacks. As of 2021, more than 85 % of Canadian companies experienced an attack, with only half of them holding security insurance to protect their business.
Although 39% of ransomware attacks can cost an average of 2 million dollars, cyber insurance is becoming more problematic to obtain. It is predicted that it is set to become as essential as workers’ compensation insurance soon.
What is Cyber Insurance
Cyber Insurance is “the coverage an organization can acquire to protect against losses incurred by a data breach or other malicious security incidents.”
Why Do I Need It?
Cyber insurance policies differ from one another, depending on the provider. However, these are standard policies all insurance companies will provide.
Ransomware demands: this is common; when a company is hit with a ransomware attack and pays a large sum of money, their insurance will cover the cost.
Coverage for stolen or lost devices: This will cover the cost of damaged/stolen computers, which will also consider compromised software platforms.
Public Relations assistance: dependent on the company, good insurance policies will assist in damage control by rebuilding your brand.
Data Recovery Service: Most attacks result in losing data, and most providers will hire a team of professionals to help recover said data. However, until recently, most insurance providers will not cover companies unless they have a strong Cyber incident plan.