Cybersecurity Insurance Provides Line of Defense
Cybersecurity insurance provides line of defense against a growing threat
A recent study surveyed 200 top CEOs globally and found that those executives regard cyber threats as the No. 1 threat to the global economy in the next five to 10 years.
This is hardly surprising.
Data breaches make news with distressing frequency. They affect government agencies, the biggest international corporations, and ordinary citizens and consumers. The fallout can be very disruptive for all concerned. An individual’s privacy, or even his or her identity, can be compromised. A company can suffer great damage to its reputation, and possibly a grinding halt to operations.
Then there’s the cost of rebuilding your data, and taking steps to make it safer going forward.
A backup for when security falls short
Nothing is a substitute for proper security procedures, but companies are increasingly turning to a second line of defense, for when even smart security falls short: cybersecurity insurance.
About half of respondents to Marsh and Microsoft’s 2019 Global Cyber Risk Perception Survey said they have cyber insurance. That’s up from 34 percent in 2017. One estimate has the cybersecurity insurance market growing to as high as $7.5 billion in the coming year.
Everyone will tell you to take basic precautions yourself to protect you from ransomware and other cyber attacks. They include such commonsense procedures as:
• Use strong passwords. It may be easier to remember a simple one, but that makes it also easier for the crooks to guess.
• Don’t leave passwords written down in the open. A thief will love you for leaving such critical information on a sticky note.
• Use antivirus protection. And keep it up to date.
• Make sure you have a working firewall. This can be as critical as a lock on your front door.
• Set up dual authentication procedures. You may think it’s a hassle, but it makes you more than twice as secure.
When your own precautions aren’t enough
Of course, as careful as you may be, hackers are out there constantly coming up with new countermeasures to outsmart you. That’s why it’s wise to have cybersecurity insurance as a backup form of protection.
At South Risk Management, we are well versed in this growing form of risk mitigation. To protect yourself and your company, talk to one of our experienced brokers about how you can protect your data, your identity and your reputation.