Cyber insurance helps offset costs involved with recovering from a cyber attack or security breach. It may not prevent cyber attacks from happening, but it can significantly offset the risk of a breach by underwriting reimbursable expenses.

Cyber insurance is quickly becoming a default insurance option for companies that store any kind of data online, and here are the three main reasons why you need to purchase it;

Cyber attacks are on the rise

Despite companies consistently putting more sophisticated security measures in place, there’s still a consistent year-over-year increase in cyber attacks.

With the increasing volume and diversity of cyber threats, it’s more likely than ever that a business will experience a breach at some point. Cyber insurance mitigates the financial risk of an attack by helping your firm recoup lost productivity, as well as the active costs of notifying clients of a breach and recovering your data.

Even small breaches are costly

The typical ransom amount demanded from cyber attacks aren’t especially large, but it’s not the ransom that threatens your firm’s financial status; it’s the cost of lost time and additional effort to recover from the attack.

Even if your firm opts to pay the ransom quickly, it can take hackers up to 48 hours to verify your payment, leaving your firm struggling to recover from the disruption caused.

Provides ‘true security’

Cyber insurance alone can’t save your firm from costly attacks. It’s simply an important way to protect your company from the after-effects of a breach you hope will never come.

Since the best insurance is insurance you never have to use, the bulk of your attention should fall on building and maintaining a secure private cloud that limits the opportunities for hackers to gain access to your systems. Pairing cyber insurance with this kind of holistic, preventative data security is the best way to make sure you’re protecting your accounting firm from every angle.

Source: AccountingWEB