Most business entities operate via the internet. The internet is the backbone of any business that is willing to grow and reach the masses. While it may not be easy to have a more extensive customer base, internet technology makes it possible to provide goods or service across continents.
With the rise of internet technology, new forms of risk have developed – thefts, hacking, cyberstalking and digital fraud. Increasing instances of these kinds of frauds make it imperative for any business to have a cyber insurance plan. Not only business entities but also high profile individuals are preferring to invest in a secure cyber policy.
In this article, we have compiled a guide for you to select the right cyber insurance policy.
#1 Assessment of your need
The first and foremost step in availing cyber insurance coverage is assessing the requirement. The type of risk faced by you or your organisation is instrumental in determining the coverage options. Does your organisation store sensitive information on the cloud? Does it include financial information which if obtained by hackers can prove to be risky? These are a few questions that are necessary to be addressed when looking for a cyber insurance policy.
#2 Read the policy terms
Once you determine the requirement, read the policy terms carefully. Make sure you thoroughly read the policy document to have a clear understanding of what constitutes a security event. This way, you will be in a better position to know when an insurance claim can be made.
#3 Make sure it meets your need
A cyber insurance policy will be of no good if you do not familiarise yourself with the policy terms. Take the time to learn what a policy offers, and if that coverage even relates to your business. Two critical features to look for are business interruption coverage and contingent business interruption. Generally, there is a waiting period for the policy to come into force. Ensure you know about these minute details when finalising on the purchase.
#4 Familiarise yourself with policy offerings
Your cyber insurance will not be of much use if you do not assess what it has to offer. You need to know the various threats against which your policy provides coverage. The cases of phishing or email spoofing are on the rise, and buying a general insurance plan that protects against these events is crucial. Some plans extend the policy coverage to include cyber extortion too.
#5 Know your responsibility
The offered coverage and other benefits of cyber insurance will provide you protection from financial losses, but it is essential to know what are your responsibilities too. You cannot be ignorant of cybersecurity while relying solely on the cyber insurance policy. There are pre-specified conditions that you need to fulfil to claim with your insurer successfully. Acquaint yourself with such various conditions so that making a claim is a hassle-free experience.
The above buying guide will ensure you have a robust cyber insurance policy that can cover unexpected financial losses and cyber attacks. Be wise and invest in a cyber insurance policy today!