Cyberbreach? It ranks right up there with a natural disaster
It’s seems quite natural to protect your company against a natural disaster. That’s why companies wouldn’t think twice about purchasing insurance policies to cover their equipment, facilities and other assets. You never know when an earthquake, storm, tornado or flood can hit.
Yet, the same can be said of cyber attacks. You never know when one could hit. And it can be even more devastating than a natural disaster, according to the companies who have suffered the damage of one.
The Ponemon Institute, a privacy and information security organization, surveyed companies impacted by a cyberbreach - and 76 percent of them said it created damage and disruption equal to or greater than a fire or natural disaster. That could be the reason that an increasing number of companies are seeking insurance to cover them in the event of a cyber attack.
While you’re likely familiar with traditional commercial insurance policies, you may not understand the requirements of cyber liability policies, which are just now appearing as an option for many businesses. One thing is sure … determining how vulnerable your company is to a cyber attack will be one of the determining factors in the ability for you to gain adequate coverage, which can include liability for security breaches; covering the costs to restore or replace business assets; and the expenses resulting from your business operations being disrupted.
According to the National Association of Insurance Commissioners, insurers must gauge those risks by analyzing the applicant’s risk management procedures and risk culture. That’s why the cyber risk policies will be significantly more customized than other business insurance policies. Coverage will depend upon numerous factors, including how well you have developed risk management procedures, disaster response plans, security policies, and equipment updates designed to protect against cyber attacks.
Protecting your company against natural disasters, fraud and cyber attacks is essential. As a leading colocation center in the Midwest, Lifeline Data Centers has been helping clients with data protection solutions for nearly 15 years. Contact us to see how we can help you.