Welcome to one of the insurance industry's newest segments - cyber insurance. These policies help cover costs and liabilities of a data breach as part of your overall cybersecurity plan.
The National Cyber Security Alliance says the first step in figuring out what plan will work best for you in identifying the potential risk your organization has, especially since each policy is different.
When you're considering the purchase of cyber insurance, it's important to understand the type of information your organization maintains or processes and what are the consequences if this information is stolen and/or exposed. For example, your company has much higher exposure if you’re maintaining or processing personally identifiable information (PII), including medical records, date of births, or social security numbers. If this information is stolen or exposed, you may be required by law to communicate to all potentially impacted individuals.
According to the 2016 IBM Cost of Data Breach Study, the average cost incurred for each lost or stolen record containing sensitive and confidential information was $158. This means if you have 3,000 such records that were stolen or exposed, your loss may amount to in excess of $450,000!
To read more about Cyber Insurance 101 click here. Also note that your cyber insurance carrier may provide you a policy discount if you implement a basic security program, such as our ISE program. |