Cyber Insurance. Yah or Nah?

While we all understand the importance of using technology to conduct business, the idea of cyber insurance to help us if our networks are compromised is a relatively new concept. Cyber insurance is used to protect an organization from internet-based risks and more generally from risks relating to information technology infrastructure and activities.

Hackers are just as sophisticated as the technology devised to keep them out. Just as soon as a patch or update is offered by legitimate companies, cybercriminals are looking at different ways to steal data. We all read about the attacks in the news and splashed all over media, but most businesses think it will never happen to them. Just like most good drivers believe they will never be in an accident.

If you have an IT network, you are at risk of being hacked.

This is not a matter of if but rather of when. Hackers don’t play favours and won’t hesitate to steal what you have stored. Small and large businesses are all at risk, and a cyberattack can result in severe losses no matter what size organization you have. Cybercrime costs the global economy more than $400 billion a year

While some may argue cyber insurance is the best bet to protect yourself against an attack, there are others that question this product. Cyber insurance policies are the hottest product on the market, but researchers are warning that one substantial cyber catastrophe could bring the cyber insurance industry to its knees.

There was also a rash of unsuccessful lawsuits against the insurance companies when organizations purchasing the policies misinterpreted the cyber coverage they paid for. While the need for cyber insurance seems to be skyrocketing, this market is fairly new and still finding its footing.

If you still feel this is the best route for you, understand that you will need to prove your company has completed a risk assessment and follows best practices by enabling all defences and controls afforded to them. If you are unsure of what this entails, call MicroAge IT Solutions. We can help you from the initial assessment to creating a layered approach to your cybersecurity.

Get the most from your IT

As service providers to more than 300 companies, the dedicated professionals at MicroAge are second to none when it comes to managed services. By improving efficiency, cutting costs and reducing downtime, we can help you achieve your business goals!