Cyber Insurance as Mandatory Cybersecurity Tool

In today's digital age, the need for cyber insurance as a mandatory cybersecurity tool has become increasingly apparent. With the rise of cyber-attacks and the potential damage they can cause, businesses of all sizes are recognizing the importance of protecting themselves against these threats. Cyber insurance is a specialized form of insurance that is specifically designed to protect against the unique risks posed by cybercrime.

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Reasons Why Cyber Insurance Is a Mandatory Cyber Security Tool

Below are a few key reasons why Cyber insurance is considered mandatory cyber security tool for your business.

Increase in the Frequency and Severity of Cyber Attacks

According to a report by Cybersecurity Ventures, the cost of cybercrime is projected to reach globally $10.5 trillion annually by end of 2023. This highlights the need for businesses to have a plan in place to protect themselves against the financial losses that can result from a cyber attack. Cyber attacks are becoming more sophisticated and are targeting small and large organizations alike, it's no longer a question if an organisation will be targeted, but, when?

Potential Damage due to Cyber Attacks

Another important factor is the potential damage that can be caused by a successful cyber attack. A data breach can result in the loss of sensitive information, financial losses, and damage to a company's reputation. These can have a devastating impact on a business, potentially leading to bankruptcy.

In addition, a data breach can also result in legal and regulatory fines, as well as the cost of notifying affected individuals and providing credit monitoring services. A network failure can disrupt business operations, resulting in lost revenue and damage to a company's reputation. These risks are not covered by traditional forms of insurance, making cyber insurance a mandatory cybersecurity tool and a necessary step for businesses to protect themselves against these threats.

Mandatory Requirement

Furthermore, many industry regulators and standard bodies have made it mandatory to have cyber insurance for organisation's that handle sensitive information. For example, DISHA (Digital Information Security in Healthcare Act) for healthcare organisations, PCI DSS (Payment Card Industry Data Security Standard) for an organization that handles credit card information, and many more.

This further emphasizes the importance of having cyber insurance as mandatory cybersecurity tool for businesses of all sizes. This is to ensure that companies are well-equipped to deal with the aftermath of a cyber-attack and to ensure that they can continue to operate in the event of a cyber incident.

Features and Importance of Cyber Insurance

Cyber insurance can also provide organisations with access to a wide range of resources, including incident response teams and forensic experts, which can help organisationsquickly and effectively respond to a cyber attack. Additionally, many cyber insurance policies include coverage for public relations and crisis management expenses, which can help organisations to mitigate the damage to their reputation in the event of a cyber attack.

When purchasing cyber insurance as a mandatory cybersecurity tool, it's important for companies to consider the specific risks they face and to select a policy that provides appropriate coverage. Some policies may provide coverage for a wide range of potential losses, while others may be more narrowly focused. Organisations need to work with a trusted insurance broker to identify their specific needs and to select a policy that provides the appropriate level of protection.

Conclusion

Cyber insurance as a mandatory cybersecurity tool is becoming increasingly necessary due to the increasing frequency and severity of cyber attacks. The potential damage caused by a successful attack, and the lack of coverage provided by traditional forms of insurance, make it necessary for businesses to protect themselves against the financial losses that can result from a cyber attack. With more and more regulatory bodies making it mandatory, it’s important for companies to consider purchasing cyber insurance coverage to ensure their business is protected against cyber threats.

Written By: PolicyBazaar - Updated: 23 January 2023
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Policybazaar for Business - Cyber Insurance - Customer Reviews
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4.3 October 11, 2022
Aarti Singh
Knowledegable Team
The representatives at PolicyBazaar were knowledgeable, patient and genuinely committed to helping me find the best insurance policy for my requirements. They took the time to answer all my questions and provide valuable guidance, ensuring that I had a thorough understanding of the coverage details and terms. THANKS.
Agra
4.3 October 06, 2022
Amit
Quick And Hassle Free
After seeing a rise in cyber attacks in many of the companies, i decided to purchase a cyber insurance policy for my start up. I went on the Policy Bazaar website and learned about the coverage in detail and purchased it from their website only. It was quick and hassle-free purchase.
Nashik
4.5 October 04, 2022
Pinku
Paperless Process
We bought the contractual liability insurance from policybazaar and received the best overall package. The process was paperless as we applied for insurance online and the support was amazing.
Surat
4.5 October 03, 2022
Aashish
Extensive Coverage
We thoroughly checked all the benefits and features and decided to buy a contractual liability policy from Policybazaar. It provides all the necessary features to safeguard our business against any loss.
Ahemdabad
4.5 October 02, 2022
Nishant
Easy To Buy
It was easy to buy insurance from Policybazaar and customer support was also amazing to clear all the doubts. Contractual liability insurance is essential for my business and I could not get a better deal than this.
Udaipur
4.5 October 01, 2022
Puneet
Easy Plan Comparision
An ideal Contractual Liability Insurance policy purchased to protect our business that we ecounter in our everyday operations. Policybazaar offers a platform to compare multiple plans.
Assam
4.5 September 30, 2022
Govind
No Broker And Paper Work
Great experience at Policybazaar. We did not know that buying Contractual Liability Insurance could be that easy. Also there is no broker and paperwork.
Jharkhand
4.8 September 29, 2022
Rinku
Perfect Insurance Coverage
I purchased Contractual Liability Insurance from Policybazaar and the coverage they provided is perfect to keep my hardware business safe various unforeseen instances.
New Delhi
4.5 March 18, 2022
Ishan
Cloud Storage Cover
I wanted to purchase a cyber insurance policy could provide coverage for the data stored in cloud network. I went on the Policybazaar website and look up for plans that would provide me with this coverage. I compared different plans and in a matter of minutes i found the right cyber insurance plan that would fit my requirement.
Ajmer
4.5 March 17, 2022
Anurag
Good User Interface
I was looking for a cyber insurance policy online. After looking for the insurance plan online I landed on the Policybazaar website. Trust me, the user interface of the website is so good that i was able to locate the cyber insurance plan and purchase it in not more than 10 minutes. Thanks Policybazaar.
Delhi