When organizations and corporations look for insurance alternatives and ways to manage their corporate risk they oftentimes turn to insurance captives.
When it comes to insurance captives available to businesses, the single parent captive (or pure captive) is the most simple. When one organization or company owns, controls and manages a captive it is considered a single-parent captive. These single-parent captives are formed to insure the company and its subsidiaries. Companies choose to utilize single-parent captives because they can help regulate insurance costs with more consistent and stable pricing from year to year. Organizations are drawn to captives because they offer flexibility. The owners maintain control of coverage, limits and providers as well as other operational aspects.
Industry experts like Caitlin Morgan cite single-parent captives as the most popular type of captive in the market today. Single-parent captives have been around for decades and continue to provide the lower costs and improved cash flow companies are looking for. There are numerous benefits to taking advantage of insurance captives but there are things to consider, too. Make sure you partner with an industry expert before you make your decisions. A little proactive research on your part can ensure you choose the right insurance coverage for your organization.
With the influence of technology in all areas of the economy, few industries are immune to the threat of cybercrime. Many companies mistakenly assume that the financial industry is the most susceptible to cyberattack because of the funds and personal information used and stored on cloud-based servers, but as Caitlin Morgan Insurance warns, anyone who takes online payments, stores information digitally, or relies on electronic communication is at risk. A cyber liability insurance policy is one way to address these concerns.
The Cost of a Data Breach
Although there is loss associated with whatever is destroyed or taken during a data breach, there are several other areas that can financially devastate a company. These include:
The costs associated with repairing the physical security features of the business.
The loss of profits due to company shutdowns.
Reduced profits due to client loss and damaged company reputation.
Expenses association with notifying all stakeholders, clients, regulatory agencies, legal teams, and law enforcement.
By carrying a comprehensive cyber liability policy, there is financial assistance in the event of a breach. These policies are designed to assist with the losses experienced, as well as partially cover the cost of legal or settlement requirements. These services vary according to the policy.
It is unwise to think your company is safe from cyberattack. The use of tablets or devices, servers, and digital communication makes every business a target for hackers and the dark web.