Top 3 Benefits of Investing in Cyber Insurance

The Internet has completely revolutionized the way companies engage and serve customers these days. While internet communication tools like social media, IoT, VoIP, etc have been instrumental in transforming business communication for the better, they also at times act as a bridge for cyberbullies and hackers to access business-critical data. Data engineering services suggest that cyber insurance will be a top priority for businesses of all scale and size in the future and companies will have to adopt strong risk management plans. 

In this blog, we share some of the primary benefits that cyber insurance offer to enterprises:

1. Covering Intangible Risks:

Traditional insurance services offer coverage to liabilities which are "tangible" in nature. For example, insurance companies offer coverage for IT hardware but not the IT data or information. This does not align with the current digital business landscape which is becoming increasingly data-driven.

2. Balancing Breach Coverage:

The cyber law necessitates that an organization must inform all affected parties about the data breach. In case it fails to do so, the law states strict actions against the organizations. Further, the affected parties have their own rights to claim compensation against the data breach. The degree of compensation varies with the country as well as depends on the complexity and scale of the data breach. As such cyber insurance helps an organization to balance data breach expenses

3. Expert Counsel:

Last but not least, most organizations are still naive about the legal discourses and response that a data breach deserves. Furthermore, their in-house legal counsel lacks the expertise and experience in cyber security law and policies. Cyber insurance providers have their own team of certified lawyers, vendors and resources expert in data security and privacy laws. A company can most benefit from these resources to better handle the public and media outrage that more often than not follows a data breach incident.

As the digital landscape keeps evolving, its complexities are also increasing. It is not within the capacity of a single organization to cover all risks related to digital data security and privacy. 

Data analytics companies predict that although still in its infancy, cyber insurance is the way ahead for digital businesses who cannot meet their current needs with traditional insurance. A digital insurer is one thing that most digital businesses would prefer to have by their side when faced with cyber attacks or data breach.