Cyber Insurance

Why Businesses Need To Increase Their Budgets for Cyber Insurance

Businesses today have become quite reliant on technology. Just over the last decade, the integration of technology has overtaken the way we live, work, and play. Without a doubt, technology has invariably made everyday tasks so much easier. With the number of internet users as high as 2, 937 million today, it comes as no surprise that technology is indispensable a tool for people. Similarly, as more and more people are online, businesses have had to adapt to and prioritise technological evolution in order to keep and grow their consumer base. And, that’s exactly why cyber security is an important component for business insurance packages these days. 

The increasing adoption of technology in businesses on the global stage necessitates a greater amount of security tools as well. With more data being collected and passed online, businesses need to consider how their cyber security is being managed for several reasons. 

Cyber security is crucial not only for the protection of consumers’ data, but also the preservation of business ideas, property and daily operations. Though cyber insurance may not have been a priority for businesses to get while starting out, it has since become a priority as technology takes center stage in daily operatives. 

As leading insurance brokers, the Expat Insurance team can help you figure out a tailored solution to including cyber insurance into your package. 

What is cyber insurance and why do businesses need it? 

A type of insurance that protects businesses from cyber attacks and problems, cyber insurance has become somewhat essential today. What does it cover?

A cyber insurance policy covers aspects like data privacy and protection, third party privacy and liability damages, including PR to mitigate any reputation management costs. On the business side, cyber insurance can come in handy for the forensic costs to evaluate and contain a breach, indemnification for losses of gross margins and costs involved in data restoration. 

With a majority of business operations dependent on technology these days, protecting against cyber security attacks becomes as pivotal as other insurance policies when building a business. Along with other necessary policies such as professional indemnity and employee benefits compensation, cyber insurance is now a necessary component as well. 

3 reasons to invest in cyber business insurance 

With the global cyber insurance market expected to reach $22.8 billion globally by 2024, cyber insurance is steadily becoming more than just a basic need. Some businesses are allocating bigger portions of their budgets into cyber insurance, making it a priority. 

Find out why understanding cyber risks is pivotal to protecting your business here

Additional layer of security 

While general business insurance can protect your company from any risks and losses, cyber insurance adds an additional layer of security – something that is necessary in technological times. 

Lowers costs incurred for any incidents 

Business owners today need to recognise that being left uninsured could leave your business to high financial risks. 

Gives investors a peace of mind

Cyber insurance provides other companies with a peace of mind – especially if they’re investing in your business. It gives your business and its ventures an added boost of security. 

How to reduce risks? 

There are several steps businesses can take to reduce their risks of cyber threats, besides acquiring a cyber insurance plan. 

Craft a data breach response plan 

Education is one of the first few steps companies can take to improve cyber security ethics in employees. By educating employees on the necessary protocol and steps to take post data breach, you can lower the risks of any further cyber attacks on the system. The following hours and days can be extremely crucial to keeping your business operational. 

Safeguard data 

Ensure that employees with access to sensitive data are properly briefed on the protocol to take during data breaches. Limiting the access employees may have to data can also help businesses to reduce their risks of cyber attacks. 

Regularly assess risks 

Having a well-thought out plan can protect your business from cyber attacks and reduce the risks incurred but it’s equally important to assess your risks from time to time. A good assessment plan can help you reduce the chances of possible attacks and threats. 

Ensure Business Security with Cyber Insurance 

Strong business security comes with thorough planning & measures put in place. A good business insurance plan covers components like cyber insurance and, given the prominence of technological use in businesses today – cyber insurance is one thing to consider increasing budgets for. Speak with Expat Insurance to see how tailored plans can help with securing your business with cyber insurance – fit to your business needs.