The modern digital environment is more risky than ever before, and the incidence of cyberattacks only increased throughout the COVID-19 pandemic. In this day and age, even the most robust security systems may still be penetrated or breached by a sophisticated cyber-attack. This means companies can no longer afford to be complacent about security.

If a breach occurs, you may need cyber insurance to receive funds for rebuilding your business, fixing your website, or paying fines in case you lose customer data. And to ensure that your cyber insurance claim is accepted, you’ll need to make sure you know what insurers look for in cyberattack claim applications.

Is Cyber Insurance Really Necessary?

Short answer – yes! Perhaps in large part due to the COVID-19 pandemic, cyberattacks have been on the rise. As more companies have shifted to remote work while using unsecured systems, the costs of hacks, database breaches, and other attacks have led to the loss of millions of dollars across industries.

Naturally, cybersecurity insurance claims have increased in conjunction with cyberattacks. One insurance company reported that it processed more claims in the first half of 2021 than it did in any other comparable timeframe to date.

This follows a broader trend with insurance claims across industries and types. For example, since the pandemic began, there has been a 50% uptick in the number of Canadians purchasing a life insurance policy. Just like life insurance, it may be time for you to consider the long-term financial wellness of your company when it comes to cybersecurity.

Cybersecurity insurance is very important because it can protect your organization from unforeseen costs. In the wake of a cyberattack, you may need to recover customer data, cover legal fees and expenses, and repair damaged computer systems. All of that will have to come (Read more...)