The risks to businesses of being involved in a data loss incident are higher than ever. Companies are constantly under attack from individuals and companies attempting to breach their networks in search of personal information that can be resold to criminals. If you think 2017 was a bad year for cyber attacks, just wait to see what next because cyber crime is big business and it’s a very high-payoff, low-risk crime to become involved with.
While insurance is now widely available to anyone wishing to respond to likelihood of a cyber attack, including data breaches, many companies in the area are choosing to invest in Indiana cyber security insurance coverage. Having these types of cyber policies provides coverage to aid in restoring your business’s damaged reputation and any devalued intellectual property after an attack takes place.
A security program provides enhanced help
Cyber risk policies are designed to help cover the cost of a comprehensive security program and not having coverage could lead to fines or penalties. This may include periodic audits that will likely be required by the state, perhaps for several years after a data breach. It is important to know exactly what a policy does and doesn’t cover so you can purchase additional riders to address certain vulnerabilities.
There are some effective risk management techniques that businesses are now implementing to help reduce the possibility that a data breach affects any intangible and uninsurable assets. According to the Ponemon Institute L.L.C., the average cost of a data breach is $214 per record, including notification, credit monitoring, defense, and forensics. Plus, there’s an added cost to have a call center service handle inquiries from affected customers and you’ll also need to engage a crisis public relations firm.
Heightened security one of the best defenses
In some cyber liability policies, the coverage addresses any damage, corruption, or deletion of intellectual property that’s on a system and is limited, more or less, to the cost to replace or restore that information on your computer network, but not necessarily the asset value. But, for example, if a foreign government has somehow obtained viable information, simply putting it back does nothing to restore faith in your organization, and reputational damage is irreversible.
All businesses need to have a robust data security measure, which includes effective training for all staff handling customer data with an understanding of what their responsibilities are. Technical measures, such as access control (i.e. passwords), firewalls and encryption must also be robust as well. Indiana cyber security insurance can help in your efforts to keep higher levels of security for confidential materials.