Cybersecurity insurance offers coverage for ransomware attacks, business interruption due to a cyber event, and sometimes breach incident response support. It can be very useful to have this type of coverage, especially with cyber attacks on the rise since 2020. So, does your business NEED cyber insurance?
Does Your Business Need Cybersecurity Insurance?
The short answer is, yes. You should have some type of cybersecurity coverage included in your business insurance policy. However, it’s VERY important to read the fine print, as it is with any policy. Typically, there are stipulations included with cybersecurity insurance that can affect whether your cyber event will be covered. If you don’t follow the stipulations, you could be paying for coverage that doesn’t apply.
Stipulations of Cybersecurity Insurance
Most cybersecurity insurance policies only cover events IF your company is following specific security measures. These measures can include:
- Changing passwords regularly
- Data backup no less than every seven days
- Software updates no less than 14 days after release
- Virus protection that is updated no less than once a month
- Employee social engineering training
Some policies may not cover breaches such as phishing and in some cases fund diversion. Depending on the type of policy you choose, some things may be covered while others are not.
If you need help understanding the fine print of your cybersecurity policy, give us a call at 512-869-1155 or book an appointment here!