Cybersecurity insurance, also known as cyber liability insurance or cyber insurance is a contract that helps an organization reduce the financial risks of running a business online. In this contract, the company pays a monthly, quarterly, and yearly fee to the insurer. And in return, the policy transfers a share of the cybersecurity risk to the insurer.
The concept of cyber insurance has been out for a while. Most organizations with a dedicated Managed IT Services New York team tend to purchase cybersecurity insurance. But the increased risk of cyberattacks amid COVID-19 has encouraged companies are moving towards cyber insurance options.
The importance of cyber insurance
Cyber attacks on the Manhattan IT Support of a business can have adverse outcomes, such as loss of revenue and customers. Companies are liable for the damages resulting from the theft, leak, or breach of third-party data. Cyber liability coverage protects IT Support Manhattan teams from the risk of cyber events. Besides, it also assists in the remediation of cyber threats and attacks.
In 2011, Sony’s PS network was breached, which exposed PII (personally identifiable information) of more than 70 million players. It resulted in an outage that lasted for 23 days. Unfortunately, Sony did not have cyber insurance in plays, and the company had to incur over $171 million worth of damages on its own.
Sony is a big brand, and it managed to bounce back from such hefty loss. But most small businesses cannot bear such losses. Therefore, IT Support Manhattan teams of these companies should encourage business leaders to invest in a cyber insurance policy.
Who needs cyber insurance?
Any business that has a Business IT Support Manhattan team and stores data online can benefit from cyber insurance. This data includes customer contacts, customer sales, personally identifiable information, and credit card numbers. E-commerce businesses, service-based companies, and retail websites are at a higher risk of cyberattacks.
What is covered in cyber insurance?
Most cyber insurance providers offer customer policy options. Thus, you can select the terms and features depending on the size of your business and Managed IT Services New York team. Most insurance policies provide coverage for the following instances.
- Notifying customers if the Manhattan IT Support has suffered a security breach.
- Fulfilling extortion demands from a ransomware attack
- Restoring identities of customers whose PII was leaked
- Repairing damage incurred by the IT Support Manhattan team and computer systems
- Paying legal fees
- Recovering altered or stolen data
Depending upon the price and type of your policy, you can get coverage for extra expenditures resulting due to physical destruction or theft of IT assets.
Conclusion
Phishing attacks and other cyber risks are on the rise. Cybersecurity insurance can help companies reduce the risk of cyber threats. If a breach has occurred, these policies also help organizations reduce the size of the loss and facilitate a speedy recovery.
Business leaders should invest in cyber insurance policies to ensure the security of their Business IT Support Manhattan team and business information.
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