It can be small business or huge business, what ever it may be, 70 percent of assets of a company are tied up with its information resources. It may be difficult to protect that information.
Unauthorized access of the data of the company by employees or outsider is called as cyber risk. This risk can be theft of proprietary information like customer credit card information, financial fraud, network damage, software piracy or hardware theft like loss of laptops or PCs.
Generally, digital disruptions can be caused by human errors and also unauthorized access to proprietary information or the hijacking of your website result because of lack of security or lack of sufficient attention. According to FBI, 95 percent of respondents reported ten or more incidents of hacking on their websites. According to FBI survey, many financial losses are caused by malicious viruses.
The tangible costs are caused by intangible costs of cyber risk exposures. These costs can be loss of business because of the security breach, productivity loss from both information technology and non technical staff because of computer problems, and etc.
So, one should ensure that whether business insurance can protect this digital risk or not. Protection can be offered by cyber risk coverage from both internal and external security breaches and coverage for costly restoration process can be covered by this policy. There are many companies providing this type of coverage. Any way your company should meet minimum security standards and it should have strong response plan to face any unpredictable event.
According to size of the organization and it’s exposure, the cost of policy will be. So, this cyber risk coverage is also necessary like other insurance policies for business firms.