Category: Cyber risk insurance

Need for Risk Management

Recognize Your Company’s Need for Risk Management

Recognize Your Company’s Need for Risk Management

Businesses encounter risks and exposure based on the nature of operations and the actions of employees. While carrying a solid insurance plan is one way to minimize the financial effects of an incident that creates a loss, conducting a risk assessment and management plan is what the experts at recommend for reducing the number of incidents that may occur.

Areas of Risk

Some industries have a higher risk than others and in more sensitive areas. The finance industry has to contend with threats of employee theft, fraud, and issues with cybersecurity. Those who work in manufacturing deal with safety concerns for their employees, but also the potential for product malfunction or defect. A risk assessment recognized these areas of exposure, then develops strategies to address them. In manufacturing, it could be establishing more rigorous manufacturing job training programs. In the financial sector, strong firewalls and security protocols could be the answer.

How to Develop a Plan

Risk management programs are often used in conjunction with comprehensive insurance plans. Many insurance providers are able to help craft a risk response, and in doing so, it could help lower your premium costs. If you want to conduct a risk management assessment, make sure it is done systematically and thoroughly. Also, establish a process for recording the results and continually reviewing them in order to evaluate how much progress your company is making.

cyber risk insurance

Insurance for Cyber Security Attacks

Insurance for Cyber Security Attacks

In today’s world, businesses are exposed to cybersecurity risks more than ever before. As such, insurance companies began providing cyber risk insurance to help companies recover from cyber attacks and data breaches.

The Dangers of Cyber Attacks

Cyber attacks or data breaches occur when someone finds a way into your network and breaches your security. From there, the hacker can steal information, delete files and even download viruses that can damage your systems. Some of the results of a cyber attack include the following:

Leaked or stolen customer data
Identity theft
Malicious software viruses
Lost information
Business interruptions
Heavy legal fees
A regulatory investigation

The Protection of Cyber Insurance

Having cyber insurance for your business means you understand the dangers of a data breach and want to be prepared. Cyber risk insurance covers the following if an attack occurs:

Customer notification in the event of a breach
Legal and regulatory fines
Public relations costs
Credit monitoring expenses

Protection for the Unexpected

To protect your business and your clients, you need cyber risk insurance. That way, you can be prepared for an attack even if you don’t know when or if it might happen. However, taking this step and adding cyber insurance to your business policy means you are serious about protecting your business and customer information.