Statista.com reports that between 2005 and 2018 a total of 1,244 data breaches compromised more than 446.5 million records. To put that number into perspective for you, as of the time this article is being written, the last entry representing the entire population of the USA showed 327.2 million residents. In other words, that’s statistically more than one breach for every single person.
There are an ever-growing number of strategies that experts recommend to protect yourself, or your business/clients from such an attack, however as the protective strategies evolve, so do attempts to thwart them.
Among these evolving strategies and the industries which support them, the last decade or so has seen the advent of Cyber Insurance. But is Cyber Insurance a worthwhile investment?
The first point to make, here, is that Cyber Insurance is not a reasonable substitute for an otherwise comprehensive first and second line of other forms of cyber security. It’s important to note that insurance, in any form, is not prevention – it’s only function is as a safety net should the worst actually occur. First and foremost, encryption, SSL certification, strong password protection, and other forms of authentication should always be employed or the best insurance policy in the world won’t truly protect you.
That all said, what Cyber Insurance may actually do for you, assuming all proper other strategies have been employed, is it can offer a little peace of mind. A policy can take several different possible forms, just like many other forms of insurance. You can have a policy which is geared toward just your own personal data, or you can have a business policy which can be used to insure the data of your customers and/or cyber infrastructure. Depending on the specifics of the policy, This can offer you protection for not only data compromised, but also from legal proceedings that may occur as a result.
Cyber Insurance is relatively new on the frontier of the insurance market, but is quickly catching up in terms of how many individuals and companies are employing it. As the technology for attacking data seeks to overcome the technology for defending it, it’s nice to have a little extra layer of protection for just-in-case.
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