Cyber Insurance Market Grows as a Result of Ongoing Cyber Threats
June 14, 2012
Most of us already know that data when traveling on the Internet can be subject to a series of vulnerabilities, including data loss, especially because of hacking or threats by cybercriminals – people who make use of a computer and a network to commit computer crimes.
Many cyber crimes target computer networks or devices, but sometimes computers are just a means to commit fraud or a way to cyber-stalk.
Whatever the perpetrators’ reason to hack, cybercriminals are committing crimes subject to very serious cyber/Internet laws.
With the growth of cyberspace, there have been an increasing number of cyber-crimes threatening e-commerce and e-business. That could be bad news for the future of companies that conduct work exclusively online.
A suitable solution to protect a businesses’ technology and networks from the effects of cyber crimes is to improve cyber security using cyber insurance, an insurance policy offering liability coverage which can help protect from the damage of cyber threats or other Internet-based risks.
Cyber liability insurance offers businesses a risk-management solution to mitigate IT risks and to protect its assets; it will help offset expenses that may arise from cyber-security incidents.
There are benefits to purchasing cyber insurance for businesses: cyber insurance usually covers the cost of restoring or recollecting lost or damaged data. It also comes in handy for privacy law violations.
In addition, because third-party vendors like cloud platform service providers tend not to assume liability for data loss and/or breaches, having the right insurance could prove invaluable for a business.
Obviously to be cost-effective, cyber insurance can be tailored to meet the needs of a business that must strike the right balance between the eventual costs after a malicious event and the cost of the policy. The need for liability coverage has, however, become apparent: more and more companies today have been reporting data breach scenarios.
Edited by Braden Becker