Cyber risk insurance may help companies protect themselves
Cyber security is beginning to be a major concern in the U.S., according to a new study published by Corporate Board Member and FTI Consulting. As the world of business becomes more accommodating of emerging technologies, the possibility of cyber attacks is becoming more pronounced. Data breach can cause serious damage to a company both in terms of finance and reputation, leading many businesses to seek out cyber risk insurance coverage. This coverage is designed to protect companies from malicious cyber attacks.
Study shows companies large and small are taking cyber security more seriously
According to the study, data security is a serious concern for many of the country’s largest businesses. Small businesses are beginning to feel threatened by the potential for cyber attacks as well. As such, businesses are beginning to seek out the protection of cyber risk insurance, especially those that have a strong presence in the e-commerce world. As these businesses look for coverage, however, they are finding that the availability of cyber-risk insurance is both limited and marred with shortcomings.
Comprehensive policies can be hard to find
Though insurance focused on protecting against cyber attacks is not entirely new, the need for such protection has only recently become pronounced. Over the past two years, high-profile attacks on large companies like Sony have highlighted the damage that can be caused by data breach. While comprehensive cyber risk insurance is available, not ever insurer provides such coverage and, if they do, many do so in a limited capacity. Businesses interested in protecting themselves from cyber attack are often encouraged to take a hard look at the policies they are being offered to ensure that such protection accounts for the risks they may face.
Cyber risk insurance may be an appropriate defense against hackers
The world is quickly becoming more reliant on the Internet and various forms of technology. As such, businesses are becoming more and more exposed to risks associated with the online world. Hackers are finding efficient ways around even the most sophisticated defense measures and in such cases, cyber risk insurance may be the only protection a company can have against serious financial losses.