Cyber Risk Insurance In Orange County
In 2020, the world has seemingly entered a new era of cyber-attacks. Although breaches, viruses, and other attacks were present in the past decades, the bad actor is now more sophisticated. Hackers have also found the current geopolitical uncertainty favorable to advance their operations.
Any business that uses technology to collect and store data is at risk of a cyber-attack. The results can be catastrophic as the breaches could lead to serious financial consequences. Studies show that in 2021 alone, businesses experienced the highest average costs of a data breach for over 17 years. The cost skyrocketed from US$3.86 million to US$4.24 million annually.
Cyber risks are diverse and a real threat to any business. It would be best to secure a reliable cyber policy and get adequate coverage in a data breach. At Technijian, we want to help you avoid data breaches in the first place. It is not entirely possible to eliminate all risks.
We will connect your business to all available cyber resources to help you learn about the risk you face, the best data security practices, and get an incident response plan. This way, we will effectively prepare your business to respond and withstand a data breach.
Importance of Cybersecurity Insurance Coverage
Cyber insurance is essential to helping your business recover after a data breach. Data breach costs include revenue loss, business disruption, equipment damages, public relations expenses, legal fees, forensic analysis, and legally mandated notification fees. Another significant benefit of cyber risk insurance is its ability to protect your business against data breaches.
At Technijian, we encourage companies to create and implement a business continuity plan to help in responding to breaches. Companies that use data for their daily operations should have secondary systems to access their online resources. Test these systems regularly for functionality to eliminate any downtime.
Here are some ways that cyber risk insurance can provide coverage:
Businesses are responsible for all the data they collect and store, whether on-premise or cloud. The company will be accountable if a customer of a client’s data gets exposed through a data breach.
You can protect your company’s data from intruders by working with us at Technijian. Our professionals will recommend the best ways to store all your private and confidential data. You can also have policies and procedures governing the collection and storage of company data and document retention to avoid storing data you don’t need.
A cyber policy will cover breach notifications and remediation expenses you need to get back to your feet if a breach occurs. The coverage also extends to defense expenses like responding and cooperating with regulatory investigators.
Businesses should notify their customers immediately after a data breach as required by the law. According to a US business survey, the costs of these notifications reach an average of $1.72 million.
As part of our protection services, Technijian will refer you to a law firm to serve as your counsel and breach coach in an attempt to get reimbursement of these costs. We also help you handle customer notifications according to state laws when your customers’ personal information is compromised.
The current workforce depends on mobile and laptop devices to operate. Most employees leave these devices in the workplace or go with them home to continue their work remotely. The devices could get stolen and used in a data breach.
While it is not possible to prevent theft or loss of devices, your organization can take the necessary preventive measures, such as limiting the amount of data a device can access. These include having an effective passport and mandating periodic changes.
You can also train your employees to avoid storing confidential data on their devices or store only encrypted data accessible via a secure connection to a server.
A cyber risks coverage protects you if there is a failure to prevent unauthorized access to personal information. It will also include every device’s legal costs and investigation expenses.
Computer forensic teams help determine the extent of a breach and whether your customer information is compromised. Cyber risk insurance will reimburse the computer forensics experts without your business incurring more expenses. The policy includes coverage for potential business loss and extra costs during business restoration.
Challenges of Getting Cybersecurity Insurance
Getting reliable cyber insurance is a daunting process. Insurers have to overcome many challenges for a policy that protects a company from cyber-attacks. Read on for challenges you may face when looking for cyber-risk insurance.
Insufficient Historical Data
Most insurers base their policies on the history of risks. For example, areas prone to natural disasters such as floods will get coverage against the perils. It is impossible to pinpoint where and how an attack can occur because of cyber-attacks. They don’t have any historical data to guide their policies.
In some cases, the law doesn’t require organizations to reveal the cause of cyber breaches, except those that affect their consumer data. Most cyber-attacks are therefore left unreported. The insurers don’t have enough data to measure the costs of data breaches and may experience problems with writing effective cyber policies.
Low Awareness of Risks
Most organizations still lack knowledge and internal readiness to combat cyber-attacks, making underwriting difficult for insurers.
Difficulty in Defining a Cyber Attack
There is no precise and accurate definition of cyber-attacks as the impact of new technologies such as IoT. They cannot define threats clearly and develop a comprehensive policy to suit all business needs.
No Geographical Limitation
Hackers can operate freely irrespective of the location of the connected world. Defining a physical location for cyber-risk insurance is therefore irrelevant. Insurers have to develop policies that will work for a company in any location.
Partner with Technijian for Seamless Cyber Risk Insurance Applications
Technijian customers have access to proactive risk management services, cyber security experts, and resources to help combat data breaches. Cyber-risk insurance will help your company prepare and respond effectively to attacks. It would be best to protect your business during critical hours and days after a breach. Contact us today to get started.