Cyber Crime: The Next Big Concern For Business Insurance
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Maybe it’s just because we all have access to more information than anyone in history ever has, but it seems that the world is in a very uncertain place today. Between the political and economic upheaval of Brexit, the shifting of the global order as evidenced (and in some cases, fuelled) by the 2016 election of Trump, and coups and attempted coups taking place everywhere from Turkey to Zimbabwe, chaos appears to be the order of the day.
Central to the uncertainties inherent in the modern world, are those presented by new and rapidly advancing technologies. Adapting to the realities shaped by modern technologies has become one of the greatest challenges of business today – and key among these are cyber threats.
Of course, as an industry built on the back of risk management and mitigation, insurance has responded to these new tech threats with cyber insurance policies.
Cyber insurance: what is it?
While your insurer might not use this exact term, the general gist of cyber insurance is that it covers you or your organisation against threats originating online or from a similar digital-oriented source.
Hacking attempts, data breaches, unauthorised information transfers, fraud, etc. All these and more are threats that have come into being – or taken a different form – with the advent of digital technology and high-speed connectivity.
In answer to these threats, cyber insurance is a sub-category of general insurance that covers against internet-based liability and risk. While it’s been around for more than a decade at this point, business owners have recently started viewing it with a higher priority than in the past.
Virtual risks are real risks
In a world as digitalised as ours, the concept of ‘virtual reality’ is not a benign one. Your business’ information, its finances, its deals and contracts – everything exists as bytes of information that the right (or wrong) entity could potentially access and use in contravention of your own wishes.
Be it client data, sensitive financial information, or any of an infinite number of other examples, it is becoming ever more important for businesses to safeguard their data. Logistically, this has seen businesses invest more and more into cyber security. It has also meant more and more business owners taking advantage of cyber insurance.
Growing awareness of cyber risks
While business interruption insurance has traditionally occupied the greatest share of the average business owner’s insurance focus, that has begun to change in recent years. More business owners than ever before, cite cyber insurance as their numero uno insurance concern.
Given the changing state of the world, and the technologies that drive that change, this should hardly come as a surprise – consider Facebook’s highly publicised data breach scandals, and try and imagine the fallout among your clientele were your business to suffer a similar scandal.
At the end of the day, while it still might sound like science fiction, if you haven’t already given serious thought to cyber insurance, the time to do so is right now. So, contact your business insurance company, and start enquiring as to how they cover you against the cyber risks that are becoming more and more common concerns for the modern and forward-thinking enterprise.