Cyber Insurance Coverage – Yes Or No

Posted on Mar 10 2013 - 7:16pm by Karan Chopra

Misfortunes that a company is faced with like a missing computer equipment or damage done by a storm etc. can be covered by standard business insurances.  But how can one cover one of the most valuable commodities in this day and age- data or information. Things like data security, data theft, and website shutdown or hacker attack are some of the few inevitable dangers of any business today.

In these day and age of the internet, almost all data is getting a digital makeover, and with almost your entire business going online, protecting it becomes a matter of great concern. Although cyber insurance is relatively young, ones requirement of being covered can be determined with ones need and risk assessment and a few other requirements that are mentioned below.

Assessing ones financial risk

Before investing into any insurance plan, you need to take a closer look at your data and ask yourself a series of questions like- how valuable is your data, in case of any data losses, how much is it going to affect you financially, if the answers to those questions may culminate to your business shutting down, then you probably should consider cyber insurance. If your business revolves around crucial customer data, like medical data, financial data etc. then it may be a wise decision to invest in a cyber-insurance policy.

Evaluating and weighing your insurance options

Today there are many insurance companies ready to cater to your different insurance needs. Before getting into cyber insurance though, it is important to first have a clear vision of what exactly you need covered. It makes matters much simpler for you and saves you the trouble of going through the carriers’ enumerable policies to fit your company. It is also wise to remember that insurance policies are different for bigger companies. If you are a relatively small establishment getting cyber insurance is only a few questionnaires away.

(Image Credit / Source: Flickr / insuranceinbradenton)

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Karan Chopra

Karan Chopra, CEO at G2One Network An Internet Media Company), Founder at 99DollarWebsite and Editor/Writer at I2Mag, JustWP.org, CodeAndMe.net, TechEXplained.org, JustInfo.Graphics, HowToWebDesign.org, NextBigProduct and WPLove.co. Karan is an internet enthusiast, who loves to explore every second thing in both technology and business. You can find him on Facebook , Twitter and Google+.