Cyber ​​insurance: find out why to adopt it in your company

Do you know what cyber insurance is and why you should adopt this service in your company? Unlike antiviruses and firewalls that work to prevent problems with viruses and intrusions, cyber insurance offers posthumous help to organizations.

This service has several coverages, such as defense costs related to third-party claims and violations of information privacy. With this in mind, we have separated some essential information for you to better understand the importance of cyber insurance for your company and how it can benefit your business! Check out!

What makes companies vulnerable?

With the growing trend of Big Data, many companies in the market hold valuable data to guide their decisions and enhance their results, in addition to maintaining their processes in computerized systems and connected to the internet.

Due to the use of technology in organizations, including the world wide web and the holding of information — whether third-party or proprietary, the company becomes subject to cyber risks that can have a major impact on the business.

It turns out that solutions such as antivirus and firewalls are capable of inhibiting cyber attacks on a daily basis, however, relying on these measures alone is not enough to prevent them in an uninterrupted and perpetual way, as hackers are constantly refining the way they are intrusions were made.

Therefore, what makes an organization vulnerable is the stagnation of its risk treatment processes, such as:

  • believe that taking an isolated or specific measure is enough to contain any type of exposure;
  • not seeing your business’ data security as an application;
  • be negligent regarding essential procedures to keep your entire IT infrastructure up to date;
  • being negligent of the human factor — which is the weakest link in this security chain.

How does cyber insurance protect the company?

Insurance acts in the organization’s preparation scenario, enabling an agile, efficient and less costly response for the business. Therefore, the policy complements the protection, being able to cover, through its first and third party coverage, many of the possible consequences of a virtual attack.

Sometimes, the insurer may reimburse organizations for expenses related to possible breaches and unauthorized disclosures of information in the custody of the company and its service providers.

Therefore, cyber insurance has coverage for contracting organizations and third parties, including all post-attack and data leakage costs — as in the case of ransomware, in which files are blocked and machines are locked for a fee. rescue.

Thus, the policy will cover all expenses for a forensic investigation, a crisis management team and the hiring of specialized technical support, making it possible to reduce losses generated by lost profits . The organization always has the option to hire whoever it wants, but the insurance company has a specialist team ready to provide the best assistance in the event of a claim .

What are the advantages of cyber insurance for the company?

This service is a great alternative for organizations, because of the great risk that cyber attacks cause for companies, as they can directly impact day-to-day business with interruptions in operations, loss of revenue and legal actions. Therefore, having a service capable of minimizing such damage is ideal.

It is important to remember that in the era of business and technology, no company on the market is immune to cybercrime. Therefore, this insurance has become a standard recommendation for any risk management program .

Cyber ​​insurance acts as part of a total risk management solution, a cyber liability policy tailored to the organization’s specific needs. In this way, different advantages can be brought together to offer the right level of protection against various cyber threats.

Data breach coverage

Any type of organization that includes its customers’ personal information in its database must follow the procedures set out in the General Data Protection Law. Its objective is to protect personal data that circulates on the world wide web, changing the Internet’s Civil Rights Framework.

Companies that do not comply with the new requirements of this law will be subject to a fine that can cause enormous losses to the business, worth up to R$50 million.

It turns out that a breached organization may be responsible for additional costs, such as repairs or security enhancements, protection against legal action or against identity theft for those affected by the breach.

Cyber ​​insurance can cover breaches of privacy of personal or corporate data under the responsibility of the insured, minimizing damage caused to the company.

Business Interruption Loss Reimbursement

A cyberattack followed by a collapse of IT infrastructure can disrupt an organization’s daily operations. This results in wasted time and money, damaging the company’s processes.

Cyber ​​insurance can help protect an organization against lost revenue or increased operating costs following a cyber attack.

Defense against cyber extortion

A common form of cyber extortion is ransomware. It and other types of malicious software are designed to withhold company data and machines for a ransom fee. The information is retained until this amount is paid and, if the organization chooses not to make the payment, it may suffer immeasurable losses.

This type of attack is becoming increasingly common. Therefore, organizations should consider cyber insurance as a way to recover from the damage of an act of extortion.

Legal and forensic support

If your company is hit by a data breach or invasion, the cause of the attacks needs to be investigated. Therefore, depending on the level of severity and scope of your coverage needs, it is possible to obtain a policy that offers reimbursement protection for expenses related to investigation, consultation or even specialist support.

Furthermore, if a cyber attack occurs and your company suffers legal activity, cyber insurance can help by paying for all appropriate legal assistance and advice.

Having cyber insurance is essential to avoid losses in cases of hacker attacks on your company and bring greater peace of mind to your customers when doing business with you. Therefore, it is essential that you rely on a specialized and trustworthy broker , with quality support capable of answering all your questions. This way, you will have guidance tailored to your needs and will be able to hire a service suited to your reality.

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