Cyber Insurance: Your Shield Against Digital Threats

Uzone.id – In today’s digital world, we rely on a lot of online information, and that can make us vulnerable to cyberattacks. To protect ourselves from these threats, many insurance companies now offer cyber insurance.

Basically, cyber insurance is like a shield for your online life. It can protect your personal information and your online transactions.It’s a financial safety net that helps individuals and businesses recover from the damages caused by cyberattacks.

With technology getting more advanced and us spending more time online, the risk of cyberattacks is higher than ever. Cyber insurance helps to minimize the damage these attacks can cause.

What Makes Cyber Insurance Important?

Attacks on cybersecurity can trigger significant financial losses including expenditures for data recovery, legal support, and the loss of earned revenue.

Attacks on cybersecurity can butcher a company’s or person’s reputation, complicating the ability to earn customer or business partner trust.

Business disruption caused by cyber attacks leads to downtime that can affect both productivity and efficiency.

Cyber ​​Insurance Coverage

The level of cyber insurance protection relies on the chosen policy and insurance practice. However, in general, cyber insurance includes protection against:

• Data Recovery Cost: Pay back the revamped costs necessary to recover information lost or injured as a result of a cyber attack.
• Legal Fees: Reimburse legal costs arising from lawsuits from third parties caused by cyber attacks.
• Credit Notification Fee: Reimburse the costs required to notify clients or customers about a data breach.
• Consultant Fee: Reimburse costs for hiring a cybersecurity consultant to help deal with attacks.
• Loss of Income: Make up for revenue losses caused by a business disruption that follows a cyber attack.
• Legal Responsibilities: Offers protection against legal assertions from third parties for losses caused either by negligence or errors in the area of cyber security.

Who Needs Cyber ​​Insurance?

There are two types of cyber insurance, firstly Personal Cyber ​​Insurance (Personal Cyber Insurance) protects against action cyber crime including financial losses and expenses resulting directly from the attack cyber, and secondly Cyber ​​Enterprise Insurance which is specifically for companies.

By having cyber insurance, you can feel more at ease knowing that you have financial protection in the event of a cyber attack.

Cyber ​​insurance can help you recover your business or personal life more quickly after a cyber attack.

Some regulations require companies to have cyber insurance as part of their cybersecurity program.

How to choose the right cyber insurance

Choosing the right cyber insurance is very important to protect your business or personal data from the risk of financial loss due to cyber-attacks. Here are some tips you can follow:

1. Understand your business risks

We can start by identifying our digital assets. What sensitive data do you have? 

After that, we can carry out a threat analysis. What types of cyber attacks are most likely to occur to your business? (e.g., ransomware, phishing, DDoS).

Then carry out an infrastructure evaluation to find out how strong your current IT security system is.

2. Determine required coverage

Make sure insurance covers the costs of recovering lost or damaged data. Consider protection against legal costs if you are sued as a result of a data breach. If your business is halted due to a cyber attack, will insurance cover lost revenue? 

We need to get these answers to determine which insurance is suitable for us.

It’s also important to know whether the insurance covers the costs of notifying customers of a data breach and provides funds to pay for an incident response team.

3. Compare different offers

Insurance premiums are of course important, so we need to compare premiums from various insurance providers and find out what coverage the insurance covers.

Then choose an insurance company that has a good reputation and experience in handling cyber insurance claims. Several insurance providers offer their clients expanded services that include cybersecurity expert advice and legal help.

4. Lookout for policy regulation change

There are policies in place with a time limit after which claims can be filed. Policies of a certain kind restrict the number of claims permitted each year and place sub-limits on some types of claims.