The best offense is a great defense
Author: William Houry, Vice President of Sales
Lots of us have auto insurance, but that doesn’t mean we drive blindfolded. The best way to augment the value of insurance is by taking other precautions, like wearing seatbelts and corrective lenses. The same is true for cyber insurance. Organizations that have cyber crime policies have taken an important step, but insurance alone does not provide protection -- rather, it’s there for the mop-up when things go bad.
Our home, business, auto, and other insurances typically provide coverage for things that are replaceable, like cars or even houses. In contrast, cyber insurance provides protection from data breaches and various cybercrimes that might compromise sensitive data and corporate information. In other words, it’s providing protection from many of the things that are impossible to replace -- including a company’s reputation with its customers...
That’s why companies must stay a step ahead of cybercriminals by understanding cybercrime trends and ensuring their IT departments have the tools and frequently updated resources to adequately protect the company from cybercriminals.
There’s lots of news coverage about how cybercriminals are growing increasingly bold -- even stealing hospital patient records and local government data, for example. They are also more frequently reaching into smaller businesses who previously believed they were too small for hackers to bother with. One form of cybercrime, ransomware, is increasingly attractive because insured companies have often planned their coverage to account for potential ransomware losses and the hackers know it.
If all of this makes you believe cyber insurance is expensive, you’re right. Companies facing tight budget constraints often wonder whether to choose cyber insurance they might never need or cybersecurity hardware and software. While the former can provide peace of mind following an attack, the latter provides the actual protection in advance of an attack. Most companies should have both. At the end of the insurance period, the company should be happy if it’s paid for a premium but filed no claims: as with all insurance, staying whole is always the best outcome and has the fewest headaches. It also requires preventative measures on the part of the insured.
The good news is not all solutions that safeguard corporate data, including state-of-the-art identity and access management solutions, are expensive. In fact, having the right protections in place may help you lower the insurance premiums from the start.
Want to know more about how Versasec can help companies with their cyber insurance readiness? Talk with a Versasec expert by clicking the CHAT button at the top of the page.