Cyber insurance is to protect losses against cyber threat and losses. Cyber Insurance is not a new concept but many companies don’t have cyber insurance policies still today. The growth for cyber insurance is slow because market is very complex and inconsistent. Cyber insurance can be costly too which can go around $35,000 for a $1 million in coverage which is still less compared to costs of major breach.
It is important to know about cyber insurance and how can it benefit the organizations.
Cyber insurance is specific
Your general liability and professional indemnity insurance is not cyber insurance. General liabilities frequently cover basics like physical damage and not data breach. A simple virus can cost millions in terms of losses. Most of general liability insurer deliberately neglect the data breach clause.
All are not equal
Cyber insurance is still considered to be relatively nascent stage. It is a decade old concept to save the companies from data breach. A standard cyber insurance policy may not cover exact need of your organization. It is important to access your needs and go your proposed policy to negotiate best suitable terms.
Data loss cover
Cyber insurance policy should go beyond hacking and cover data loss. A minor data loss can cause significance damage to the company.
Example: Massachusetts General Hospital had to pay a $1 million fine to the US Department of Health and Human Services after an employee of Partners HealthCare left the records of 192 patients on a train.
Cyber insurance vs. good security
Cyber insurance is not the license to neglect security constraint of data. You have to perform assessment and audits to check the policies to secure the data.
“Being able to prove that they weren’t negligent could save organizations millions in the long-run,” explains Jamie Bouloux, a cyber insurance liability executive at AIG. “If something happens when a client loses data, they can tell the regulator that they did everything within reason to try to ensure that there was an environment of security where its employees knew how to handle client information.”
Alertsec strengthens security
Alertsec has created a web based encryption service that radically simplifies deployment and management of PC encryption by using industry leading Check Point Full Disk Encryption (former Pointsec) software.
Organizations, especially corporate giants, have to have an information security policy in place that proves they have taken necessary steps and measures to safeguard the information they gathered. If these policies are not adhered to, the regulators may prosecute.
Alertsec Xpress is used by organizations that have recognized the need to protect their information. Customers range from single-user sole traders and consultants to multinational companies with a large number of offices around the globe. Over 4 million users worldwide use Alertsec Xpress’s Check Point Full Disk Encryption.