Why Does Your Company Need Cyber Insurance More Than  Ever?

Why Does Your Company Need Cyber Insurance More Than Ever?

December 03, 2020

We are living in unprecedented times, and the need for cyber insurance has never been greater. Any business that collects data and uses technology is at risk of a cyber-attack, and the effects could cost a company thousands. Due to a significant increase in employees working remotely and the increase in cyber-attacks, managing cyber risk should equate to making sure your company or organization has the right cyber insurance policy in place.

Cyber insurance can be crucial for a company to recover after a data breach, including public relations expenses, business disruption, revenue loss, damaged equipment, legal fees, and forensic analysis costs associated with sending out legally mandated notifications. Another benefit of cyber insurance is it plays a significant role in protecting your company before a breach occurs.

At ISU Henkes Welsh Insurance Agency, we want to assist you in avoiding a data breach. We help companies prepare themselves to respond to and withstand a data breach by presenting resources to learn about cyber risks, data security best practices, and incident response planning. For example, when a company applies for cyber insurance, the insurance companies require a company to create, implement, and test a business continuity plan and an incident response plan.

If a company experiences a data security breach or ransomware incident, having the right cyber insurance policy can make a huge difference, and if the incident is covered or not.  Time is of the essence, and you do not want to learn that you haven’t purchased the right cyber insurance policy.

More than ever before, there are more cyber insurance policy choices; how does a company know which policy is the right one for their needs?

Companies continue to face various internal and external cyber threats, and many attacks target financial damage, supply chain disruption, and reputational harm. ISU Henkes Welsh Insurance Agency has experienced cyber insurance consultants to assess whether or not your company has the right cyber insurance policy in place.

Having the right cyber insurance policy will align your company’s cyber and data security risks. Whether your company is manufacturing products, in the construction industry, or any other institution with individuals data, cyber risk is a considerable exposure that needs to align with the right cyber insurance coverages.

Keep in mind that just because a cyber insurance policy is cheap doesn’t mean that it is the right policy. Often, there is a reason why the policy premium is priced so low. The premiums can be low because of coverage sub-limits, missing coverages, high deductibles, unfavorable policy conditions, and exclusions in the cyber policy.

Moreover, depending upon your company’s cyber and data security risk exposure, the coverage your company may require could be much different than that of another company, which will either increase or decrease your policy premium.

Cyber insurance is not a “one-size-fits-all” policy. Our experienced Cyber Insurance consultants can quickly spot cyber insurance issues and recommend coverage to fill the gaps. We welcome you to reach out to ISU Henkes Welsh Insurance Agency to assist you with your cyber insurance coverage questions or obtain a cyber insurance quote.