Protecting your IT assets: do you have cyber risk insurance?
Emails, document storage, customer databases, financial information – take a moment to think of all the information your company stores on its IT systems and network.
Now take a moment to think of all the risks associated with losing that information or having it damaged or stolen.
You insure your home and contents, you take out insurance to protect your health, so why wouldn’t you insure the livelihood of your organisation?
At IT Partners, we have been increasingly asked about cyber risk insurance. In this blog post, we’ll take a look at what it is, why you need it, how it can benefit your business, and some top tips for effective cyber risk management.
What is cyber risk insurance?
For many companies, data is the most important asset, second to its employees. Yet, this data is constantly at risk of breaches, leaks, losses, and hacking. Cyber risk insurance (or cyber liability insurance cover (CLIC)) protects an organisation against these risks and others that arise from issues relating to IT systems and networks.
Why do you need it?
If you have an IT company providing you with systems and networks, you may well be wondering why you need cyber risk insurance. After all, your IT company will ensure such breaches, leaks, losses and hacking don’t happen, right?
As an IT provider, it is certainly our aim to ensure each and every one of our clients is protected against such risks, but we do recommend that part of your organisation’s risk mitigation strategy is to take out cyber risk insurance. This enables you to transfer this risk and reduce what can be a considerable cost to your business, both first party costs and third party costs.
How can cyber risk insurance benefit your business?
Taking out cyber risk insurance can benefit your business in a number of ways, including cover of data breach/privacy crisis management; multimedia/media liability; extortion liability; and network security.
However, perhaps the greatest benefit is reducing the cost to your business associated with any cyber crime. This includes cost to your IT infrastructure, cost to your business operations, cost to your brand and reputation and the cost of needing to roll out your risk management strategy.
Top tips for effective cyber risk management
Cyber risk insurance provides significant protection to your business and operations, but there are also additional initiatives you can take to reduce the risk of such attacks affecting your business. We recommend the following:
- Install suitable AntiVirus and Malware software
- Implement a strong, fit-for-purpose firewall
- Understand your PCI compliance status – how you deal with credit cards is particularly important, as this is a prime target for hackers.
- Ensure storage devices, such as USB drives are encrypted and password protected.
- Talk to us at IT Partners about establishing these and other policies to protect you from cyber attacks.