Bygone are the days when large organizations used to have cyber-insurance in place. Today most businesses, irrespective of their size, industry, or type, are exploring opportunities to embrace cyber-insurance to strengthen their cyber-resilience against various sophisticated threats and risks.
The cyber-insurance industry is scaling at an exponential rate, and businesses are exploring more opportunities to minimize the financial impact of cybercrime on organizations. A recent report by Fortune Business Insights titled “cyber-insurance market” suggests that the market size of cyber insurance globally is expected to grow from USD 12.83 billion in 2022 to USD 63.62 billion by 2029.
The report also highlights that the market size will grow at a CAGR of 25.7% during the forecast period 2022-2029. However, cybersecurity business leaders need to understand that cyber-insurance can be a deceptive subject to which they need to pay attention with vigilance.
Following are a few types of cyber insurance available in the market that SecOps teams can consider:
Cyber-security business leaders that choose Remediation services to ensure their business network against cyber-threats will be able to cover the costs related to a potential breach, such as forensic services, legal fees, notification costs, credit monitoring services, and more. The best cyber-insurance provider even offers a response team instead of just covering the financial implication.
Leveraging such remediation services as cyber-insurance will help smaller enterprises with restricted cybersecurity resources and skill sets. Cybersecurity business leaders can even have Information security and privacy liability insurance to secure their organizations from claims and damages resulting from a data breach or cybersecurity incident.
The best cyber-insurance provider might even cover the legal defense and other investigative charges apart from the financial claims and damages as a part of Regulatory defense and penalties. However, businesses can even have cyber-insurance that covers the lost revenue to minimize the disruption impact.
One of the crucial aspects while embracing Business interruption cyber-insurance is that usually, the insurer offers coverage when the client’s own infrastructure is impacted. They might not offer coverage while experiencing downtime because of a cloud provider or any other third-party vendor. Based on the cybersecurity threats, needs, and impacts on the business network, cybersecurity business leaders need to have effective cyber-insurance covered to minimize the impact.
Strategies to Select the Best Cyber Insurance Coverage
As the market is flooded with various options, it is crucial for businesses to select the right cyber-insurance partner to optimize their investment. Here are a few aspects that SecOps teams can consider:
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Keep the Right People in the Loop
In order to implement the right cyber-insurance policy, decision-makers should consult with the right stakeholders and skill sets to make accurate business decisions. SecOps teams should work cohesively with the legal, IT, risk management, and cybersecurity veterans to make strategic purchase decisions. Businesses need to determine the level of risks to accept and then decide which cyber-insurance type and provider will suffice the organization’s needs.
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Maintain Data Inventory
Businesses that want to make the most out of cyber insurance coverage first need to understand which type of sensitive data they have and in what quantity. Moreover, it is also critical to understand which laws, rules, and regulations are applicable to sensitive data.
Hence maintaining data inventory is crucial for businesses to make the right cyber-insurance coverage and provider.
Also Read: Three Challenges that CISOs May Face in the Post-Pandemic Business Landscape
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Research Insurers
Off-the-shelf cyber-insurance will not suffice to meet the evolving cyber-security needs, which makes it crucial for businesses to do thorough research before embracing an insurance partner. One of the crucial aspects to consider the cyber-insurance provider is their claim denial rates and other lawsuits on them. A few vendors might have a higher denial rate than other insurers, which can tremendously impact the post-cybersecurity incident.
However, it is also crucial for cybersecurity decision-makers to evaluate the other supplementary resources like training videos, policy templates, cyber-security incident response planning guides, and other valuable material while making a purchase decision.
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