Investing in cybersecurity insurance is a must for every business this year. Why? The answer is simple: today more than ever before, businesses rely on sophisticated technology to do business. From email and data storage in the cloud to ERP systems that manage many administrative tasks once overseen by humans, today’s enterprises are built upon a foundation of computers, software, networks and databases. While these technologies can be vital to running a successful company, they also make you vulnerable to cyberattacks from malicious actors looking to steal valuable information or hold it for ransom.
Not only have cybersecurity threats become more advanced in recent years, they have also become more costly. One recent report by Cybersecurity Ventures estimates that companies will be spending over ten trillion dollars per year on addressing damages from cybersecurity breaches, with the cost to individual companies often well into the millions. Unfortunately, the presence of sophisticated cybercriminals are a modern trend in IT that is here to stay.
Why get Cybersecurity Insurance?
There are many reasons that businesses should get cybersecurity insurance, including the high costs of recovering from breaches. The financial resources offered by such insurance could save a business from having to seek outside investment, redirect money from important initiatives, or close its doors entirely. Other reasons include compliance with industry regulations, achieving a better security posture, and protecting the company’s brand.
The basic idea behind cybersecurity insurance is that it provides coverage for expenses related to dealing with a breach, such as forensic investigation and remediation services, legal fees associated with responding to lawsuits brought by customers, and notification and credit monitoring costs. Some policies provide additional coverage for public relations and reputation damage, lost revenue due to downtime caused by a breach, and even punitive damages.
With the additional resources offered by cybersecurity insurance, your business will have access to higher-quality professionals that can help you recover your data, manage relationships with your clients who were affected by the breach, and even legal representation should you be subjected to lawsuits for stakeholder damages.
Complying with Regulations & Requirements
If your business works with sensitive data, such as patient information or anything related to national defense, you likely operate under industry regulations that require some level of insurance in the event of that data being compromised. For example, health care organizations must adhere to HIPAA (Health Information Portability and Accountability Act) requirements which mandate the protection of patients’ personal health information. Similarly, if you work with customer payment information, you may need to comply with PCI DSS (Payment Card Industry Data Security Standard).
In order to even be considered for cybersecurity insurance, however, your business will have to demonstrate that it is up-to-date with not only those regulations, but general best practices in the area of cybersecurity. The rigor offered by the insurance purchase process will provide your business with a more robust security posture, making it an excellent investment that will catalyze necessary technology upgrades, lead to new opportunities and new kinds of clients.
The Value of Being Proactive
Thanks to an investment in a stronger cybersecurity posture and having more resources at hand in the event of a breach, your leadership will be able to rest easier at night knowing that even worst-case scenarios can be handled. Far too many organizations simply hope that a breach won’t occur, without taking any steps to prepare for one. However, when you take proactive measures to improve your security posture, you’ll find that there is a lot less worry involved in your day-to-day operations. This allows your management team to focus their energy where it matters most: improving the bottom line and growing the business.
Working with Kalmer Solutions
Kalmer Solutions provides managed IT services for the modern workforce. Based in Jonesboro, Arkansas, we support our clients with virtual CIO services, technology upgrades, cloud-based computing, IT support, cybersecurity, the fulfillment of compliance requirements, and more. Our goal is to become your trusted IT partner and add long-term strategic value. Contact us today to learn more about how working with us can transform your business.