Utilizing data and technology to boost your business is a no-brainer in this day and age. To be competitive, your business needs to utilize data and tech in some form, whether that’s to expedite sales, manage your marketing efforts, or even connect with your audiences.
Any business which stores or processes sensitive data may be at risk of data breaches, cyber attacks, or even cyber extortion. Cyber crime is becoming increasingly more sophisticated, and even more businesses are becoming the targets of data breach events. Even the simplest of activities, like checking your email, could expose your business data. During this stressful time, we at Oracle RMS are pleased to offer a solution: cyber insurance.
Cyber liability insurance coverage is a form of commercial insurance which is designed to protect you and your business from costs arising out of data confidentiality breaches or technology disruptions. Cyber insurance may help to cover the costs of civil and legal damages related to a cyber attack and it can cover investigation expenses, data restoration, and program restoration.
Does Your Business Need Cyber Risk Insurance?
In today’s digital landscape, where technology pervades every aspect of business operations, the importance of cyber liability insurance cannot be overstated. Cyber threats are on the rise, and even the most cautious organizations can fall victim to malicious attacks or unintentional data breaches. That’s where cyber liability insurance comes in, providing a crucial safety net and financial protection against potential losses. The cyber insurance market is expanding with each passing day.
It’s not just large corporations that are at risk. Small and medium-sized businesses are equally vulnerable, often lacking the robust cybersecurity infrastructure of their larger counterparts. The fallout from a cyber incident can be devastating for any organization, leading to financial losses, reputational damage, and even legal liabilities. Small businesses may not be “obvious victims,” but they may not have the same financial muscle to recover from a cyber security event.
Cyber liability insurance provides a lifeline in such scenarios. It helps organizations mitigate the financial burden that arises from cyber incidents. Without insurance coverage, the costs associated with a cyberattack can be astronomical. From investigating the breach and notifying affected parties to managing legal expenses and potential lawsuits, the financial impact can be crippling, particularly for smaller businesses with limited resources.
Cyber Coverage and Risk Management Go Hand-in-Hand
Technology services and cybersecurity solutions are ever-evolving fields and it’s important to stay updated with the latest trends. Cyber insurers may be able to offer you the latest and greatest insurance options to protect businesses, but cyber coverage should never entirely replace risk management strategies. They should both be implemented to protect the personal identities of your potentially affected customers and safeguard your business against third party costs and potentially devastating reputational ramifications. To help you out better and improve your odds at protecting your organization against cyber threats, we have provided some tips for increasing your existing cybersecurity measures:
- Conduct a Comprehensive Risk Assessment: Begin by assessing your organization’s unique cyber risks and vulnerabilities. Identify potential entry points for cyberattacks, such as outdated software, weak passwords, or inadequate network security. Regularly review and update your risk assessment as technology and business needs evolve. A broker can help you do this.
- Implement Robust Cybersecurity Solutions: Attempt to leverage technology services and cybersecurity solutions to fortify your organization’s defenses. Deploy firewalls, encryption tools, and intrusion detection systems to protect your network. Use up-to-date antivirus and anti-malware software to detect and prevent malicious attacks. Make sure to regularly patch and update software to address any potential vulnerabilities.
- Train Employees on Digital Usage Protocol. Human error is often the most significant contributor to cyber incidents. Educate your employees on the importance of intellectual property and preserving it through proper cyber hygiene and make sure you offer training on safe online practices. Ensure that when you conduct business you prioritize cyber training, encouraging employees to identify phishing emails, avoid suspicious links, and use strong and unique passwords.
- Establish Incident Response Plans: Develop comprehensive incident response plans that outline clear steps to be taken in the event of a cyber incident. Make sure to assign roles and responsibilities to key personnel, and ensure they are well-versed in executing the plan effectively. As well, try to test regularly and update these plans to adapt to emerging threats and technologies.
- Regularly Backup and Encrypt Data: Data backups are essential for recovering compromised data in the event of a cyber incident. By implementing regular backup procedures, you can ensure that critical information is safely stored and cyber criminals are kept out. Additionally, encrypt sensitive data both in transit and at rest to provide an additional layer of protection.
- Monitor and Detect Cyber Threats: Employ robust monitoring systems to detect and respond to potential cyber threats in real-time. Consider the utilization of intrusion detection/prevention systems to monitor network traffic for potential suspicious activities. You may also consider the implementation of a log analysis and security information/event management solutions to identify potential breaches and anomalies. Not all breaches are discovered immediately.
- Engage with Security & Privacy Professionals. Sometimes, you need to outsource some of your procedures to expert third-parties. Experts trained in cyber exposure and data loss can provide expert guidance, conduct penetration testing, and allow you to stay on top of emerging threats and best practices.
How to Purchase a Business Cyber Insurance Policy
Choosing a cyber insurance policy that works for your business and protects it against potential cyber risks is not easy. Choosing any business or liability insurance policy is a careful science, and a process best done with the guidance of an insurance broker. Before you purchase a policy, we advise that you assess your cyber risk profile to determine your needs.Once this has been completed, it’s time to research and compare policies.
Oracle RMS can help go over your cyber risks with you and help you research between top cyber insurance providers to gauge the best option for you. We will provide you with insights on coverage types, policy limits, deductibles, and exclusions. Comparing multiple cyber insurance policies will allow you to find the one that best aligns with your company’s liability insurance needs and its risk tolerance.
Purchasing cyber liability insurance is never a one-size-fits-all approach, and Oracle RMS specializes in customized insurance policies. We are happy to engage with you and your business to provide you with valuable insights and help you get top quotes to select from.