Upon a quick Google Search, you will find Cyber Insurance is defined as protecting businesses and individuals from network-based risks and attacks. You would also find out that large insurance companies such as Progressive and Nationwide offer Cybersecurity insurance policies. Why? No one can fully prevent data breaches, which is why Cybersecurity insurance exists. And, the cost of incident response is seldom budgeted for by any organization, so the Cyber insurance policy helps cover those costs to recapture and rebuild your data.
Should My Business Invest in Cyber Insurance?
We get a lot of questions from customers concerning the value (or lack thereof) in cybersecurity insurance. Listed below are some of the questions we receive as well as thoughts and recommendations from Nathan Maederer an Account Executive with Corsica Technologies based on his personal industry experience.
- Does my business need Cyber Insurance? Simply put, yes. Cyber insurance can be very beneficial to companies who have not budgeted for the remediation of a cyber-attack. According to Varonis the average cost of a data breach in 2019 was 3.92 million. The average cost for a data breach for a small to mid-size business was $149,000.
- Does cyber insurance cover data breach lawsuits and legal fees? Yes, most cyber insurance policies cover things such as legal fees and settlement costs as long as your company wasn’t negligent.
- Your cyber insurance will not cover losses indirectly caused by a data breach or cyber-attack.
How Can I Make Insurance Worth The Expense?
The key piece to the puzzle to ensure full use of the insurance is Log Management. Log Management, which has many platforms, is a tool that you can use to support your claim of a breach to your insurance provider.
We’ve seen that most claims from a breach will not pay out if you do not have the information provided by this tool. The insurance companies want log management to see what happened before, during and after the breach to validate the claim. Without log management, it is hard to verify any of this information. And without that snapshot, regardless of what you’ve been paying for insurance, the claim you deserve will not be paid.
Log management can be expensive depending on your compliance needs and data retention required by the insurance provider. However, many Managed IT service providers, like Corsica Technologies, offer this service as a value add. Any of our experts here at Corisca and we would be glad to help guide you on your IT journey.