Why Cyber Security Insurance is Critical to Modern Businesses

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Author: Cliff Vazquez

In today’s ever changing business climate, no organization is immune to cyber security threats and attacks. In reality, the cost of the average data breach is constantly on the rise. With that, there has been an increase in businesses getting on board with cyber security insurance to protect their assets, their technology and their people.

With most cyber security policies, you pay a premium for coverage if a data breach or ransomware attack happens to your organization. Cyber liability or data breach insurance are standalone policies that are meant to help companies recover from data loss due to a security breach, network outage, service interruption like ransomware or any other cyber event.

Impacts of Cyber Security Breaches 
Any company can fall victim to cyber criminals due to hacking, malware, crypto-mining or some other act. When cyber attacks happen, there are many potentially negative impacts including:

• Downtime and loss of business
• Loss of reputation
• Costs of investigation and resolution
• Compliance fees and other penalties

Cyber Security Costs & Coverage 
Cyber security costs depend on the type of policy and the insurance carrier you choose. The primary options are between first and third-party policies. First-party coverage protects against losses and can include reparations for cyber extortion, lost business opportunities, damage to or loss of digital assets. Forecasted risk is high and insurance carriers are then required to charge premium rates. It is also difficult for underwriters to accurately assess risk because there is a shortage of comparable data on data breach costs.

Lowering Your Cyber Security Insurance Premiums
Implementing cyber security best practices and remaining compliant with industry standards will help you lower your premiums with many carriers. Work with a trusted third-party security partner like OSI Digital to assess your security posture and operational support to outline a path to optimal cyber security protection.

Download the Data Sheet: Managed Services for Infrastructure & Security

About Cliff Vazquez, Director of Cyber Security at OSI DigitalCliff-Vazquez
Cliff brings over 28 years of experience in Cyber Security and is currently a subject matter expert for the FBI and US Secret Service Cyber Fraud Task Force (CFTF). He is certified in Information Security from USC, MIT, Stanford, and Harvard. He is also an FBI & DEA Academy Alumni & InfraGard Los Angeles Sector Chief. Cliff also has consulted for enterprises including the FBI and cross agency taskforce investigations, Fidelity Investments, SEGOG (Mexico State Department) and many other Fortune 100 companies.