With cyberattacks on the rise, comes the glaring importance of investing cybersecurity insurance. In fact, in 2022, 48% of businesses surveyed suffered at least one cyberattack, with a median cost $17,000 per attack (but ranging into the millions). In today’s digital world, using technology and storing sensitive customer data and internal records are essential – and no organization, large or small, is impervious to these attacks.
If your data or networks are compromised, your business could come to a standstill – followed by expensive lawsuits, fines, and other catastrophic losses. With this understanding comes the glaring importance of cyber insurance policies. Need a quote?
To protect your organization from cyber exposures, threats, and breaches, you should have cybersecurity insurance, also known as cyber liability insurance.
Since 1994, HCP National Insurance Services, Inc. has been serving clients nationwide, helping them define and minimize their risks with the right insurance products at affordable prices. HCP is an expert in cybersecurity insurance.
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Here’s how we help your organization secure the best coverage for the lowest possible cost.
A cyberattack is an unauthorized, offensive attempt to access a computer system to steal, destroy, expose, manipulate, delete, or otherwise damage data that is stored within the system.
Cyber insurance, sometimes called cyber liability insurance, is a type of insurance that organizations can purchase to protect themselves against the liability of cyberattacks, data breaches, and the consequences of cybersecurity incidents – therefore, reducing the risks of doing business online.
Some insurers offer cybersecurity coverage within business owner’s policies (for small businesses), while other insurers offer more robust cyber-specific policies, with higher limits, to cover larger organizations.
Without cyber insurance, your business may face severe financial and reputational damage, customer lawsuits, shutdowns, and other catastrophic business delays and losses. Thus, every organization that operates online should consider including cyber insurance in their risk management plan.
Every policy cyber policy is unique, though they can cover:
Cyber insurance coverage is for every organization that operates online; though industries with strict regulations – such as healthcare, technology, government agencies and contractors, online retail, and entertainment – have a greater requirement for comprehensive cyber insurance policies.
Companies that collect and store sensitive information, such as financial information, health records, and other personally identifiable information, must ensure that they have cyber insurance, as well as secure networks and strict cybersecurity protocols.
A cyber insurance policy especially benefits large companies with valuable digital assets and high financial gains, as breaches can result in severe asset losses, regulatory fines, expensive ransoms, and large class action lawsuits.
Cyber insurance can be divided broadly into two categories:
First-party cyber insurance can protect organizations from financial losses when they experience data breaches, cyberattacks, and other cyber incidents. It can cover expenses for risk assessments for future incidents, investigating breaches, lost income, ransomware attacks, restoring systems, notifying customers of breaches, and other recovery measures.
Third-party cyber insurance can cover organization when breaches occur from within a third party’s network or system (i.e. vendors, partners, freelancers, etc.). A third-party policy may cover legal defense costs, settlements, regulatory fines, damages and more.
For the majority of organizations, it is recommended to have both types of coverage.
HCP National can help your organization find the most appropriate coverage at an affordable price. Get a quote now.
Ready to crack down on cybersecurity threats?
Here are some quick tips for protecting your business from cybersecurity threats.
Cybersecurity insurance covers financial losses and damages that result from cyber incidents, such as data breaches, electronic theft, and ransomware attacks. Cyber coverage varies widely; some policies may cover first-party claims, third-party claims, or both. Organizations of all sizes should have cybersecurity insurance.
Get in touch with an experienced cyber insurance broker, such as HCP National, to help your organization find the right coverage for your unique circumstances at the best possible price.
Conducting frequent risk assessments of your cyber systems can help you identify high-risk areas that require immediate attention.
Software updates often include important security patches that address known vulnerabilities, bugs, and other exposures. Regularly updating all software, including operating systems, antivirus programs, and any business-specific software you use can help keep hackers out.
Always use long, complex passwords with combinations of uppercase and lowercase letters, numbers, and special characters. Change passwords regularly, and never use the same password twice. Consider using a password manager to generate and securely store random, unique passwords for each of your online accounts.
Multi-factor authentication (MFA) adds an extra layer of security against hackers when logging into your online accounts. MFA requires at least one more form of identification, such as a notification sent to your authentication app on your phone, or a code sent to your email inbox.
Are your employees a weak link in your cybersecurity defenses? Do your employees know how to identify and react to potential cyber threats? It is imperative to ensure that your employees are trained (and regularly re-trained) on cybersecurity best practices and your organization’s cybersecurity policies and protocols.
Ensure that your Wi-Fi network is encrypted with a unique password. Further precautions include hiding your network name and setting up a guest networks/accounts for visitors.
These are just a few of the ways your organization can protect itself against cyber threats. Strengthening your cybersecurity protocols can make your organization’s risk more “appetizing” to insurers, enabling your organization to procure great coverage for a reasonable cost.
Cybersecurity insurance policies usually don’t cover losses related to intellectual property, such as stolen patents or copyrights. If this is a concern, consider purchasing an intellectual property or patent defense policy.
If a business is charged with committing a crime related to or causing a cyber incident, cybersecurity insurance will likely not cover it. However, commercial crime insurance can cover theft by employees.
As your expert cyber insurance broker, HCP National’s three-step process will help you minimize your cyber risks to secure the best possible cyber policy and pricing
Founded in 1994, HCP National is an independent, privately held commercial insurance brokerage serving clients nationwide. HCP is one of the largest brokerages in the country that is led and owned by a certified minority woman.
NOTE: THE ABOVE IS A GENERAL DISCUSSION ABOUT HOW CYBERSECURITY COVERAGE MAY WORK. YOUR INSURANCE POLICY, AND ALL ADDENDA, ARE THE ONLY AUTHORITY OF HOW YOUR COVERAGE WORKS. DO NOT RELY ON THIS ARTICLE AS AN EXPLANATION OF YOUR COVERAGE. HAVE YOUR ATTORNEY REVIEW YOUR ENTIRE POLICY WITH YOU TO DETERMINE WHAT IS AND ISN’T COVERED.
Since 1994 – HCP’s top priority is finding clients the best possible coverage and terms at the lowest possible cost. HCP is a certified diverse (MBE & WBENC) insurance brokerage.