In case you didn’t know, there is insurance out there to cover your business if you are a victim of a cybersecurity attack. Cyber insurance can both cover your organization in case of data destruction, theft or hacking and provide liability protection to cover losses to those outside of the organization who might be affected by this data destruction, theft or hacking. For the organization, the insurance might cover the costs incurred when analyzing what caused the breach, hiring PR firms for telling the story to the public, notifying clients, etc. For those outside the organization, the insurance might cover among other things credit monitoring services.
So what does a cyber policy usually cost?
According to AdvisorSmith Solution Inc., the average price of a cyber liability policy in 2019 was $1,500 per year for $1 million in coverage, with a $10,000 deductible. There are ways organizations can lower the cost of their cyber policy:
- Provide employee security training
- Form a Security Incident and Response team
- Implement security analytics
In fact, some insurance providers require organizations to implement particular preventative measures such as MFA and Zero Trust Security Frameworks in order to even be eligible for getting insured in the first place. Investing in Identity and Access Management solutions like OneLogin can be your first major step along this path.
What does a breach cost?
Well, with the average cost of a breach calculated at 3.86 million by IBM, paying a few thousand a year does seem worth it.
Cybercriminals are not just targeting large organizations. They are going after businesses of all sizes, utility companies and government agencies. Not a week passes without some breach in the headlines.
If your organization handles user data in any sort of way, cyber insurance is worth it. With more government bodies implementing regulations requiring organizations to protect user personal identifying information (PII), a breach can also cause your company to incur additional fines.
So is it worth it?
The answer is a resounding “Yes!”