Guide for Cyber Insurance
*Please take note that all the content mentioned in the above video are based sololy on the current market status and our personal experience in this field of service. For further enquiries regarding your purchase of a cyber insurance, please approach a professional financial advicer or contact us for more details. Thank you!
As we move forward into a more digital market, it is crucial for all businesses to start considering the need for a proper and secured plan to protect your data. Over the recent years, businesses in all fields and industries are facing more frequent cyber-attacks that compromise their customers’ sensitive information. In an era where data plays a significant role in the survival of your business, firms should be putting more attention on their data protection strategies and find suitable policies to minimise financial losses in the event of a cyber threat.
What is cyber insurance?
How does cyber insurance protect your cyber space? Most cyber insurance policies offered in the market provide financial coverage for losses caused by data breaches and other cyber events. These policies are commonly made up of two essential components, which are your first-party coverage and third-party coverage. First-party coverage basically pays for expenses that your firm directly incurs in the event of a data breach. While third-party coverage applies to claims against your firm by individuals or companies that suffered losses caused by your actions or failure to secure their data.
Why do you need to buy cyber insurance?
While cyber insurance is not as well sought for as other kinds of insurance products in the market, there are trends that show more businesses gradually making an effort to secure their data with the right policy, especially when data-related marketing is becoming increasingly popular. Therefore, people start to recognise that data security is also a crucial part of their businesses. If they were to be unable to secure their data properly, the potential financial losses and damage to their reputation might be too significant for businesses to continue their operation.
Despite the broad use of data, many smaller businesses seem to have a misconception that only large corporations are victims of hacking and phishing attempts, but in recent years, many researches and studies have shown that small businesses are frequently targeted by phishers and hackers as well. Therefore, it is highly recommended that if you are handling customer data, it is important to consider getting a suitable cyber policy to protect yourself in the event of a cyber extortion.
How to select the right cyber insurance?
Now that you understand the importance of having cyber insurance, how should you go about selecting your policy?
Unlike many other insurance policies, cyber insurance coverage can vary significantly from business to business. With different industries exposed to different forms of cyber-threats like DDoS attacks and phishing, you should select coverage for potential threats you will face in your operations. In certain cases, you might have to request for additional coverage for specific cyber threats faced by your business. Therefore, when selecting your cyber insurance, taking into consideration cyber threats that your firm is prone to will help greatly in keeping your premiums down.
Apart from the coverage, the premium also depends on several factors as underwriting of a cyber risk is not as common as insuring of a vehicle. With little case studies in this field, insurers tend to take precaution in providing such insurance coverage. Hence, getting a professional agency in managing your insurance policies will greatly help in resolving such problems as they are able to help you identify the right coverage for your firm at a competitive rate.
Where can you get your cyber insurance?
While we are talking about insurance agencies, I would like to take a short moment to introduce our services. At Raffles Provident, we aim to assist our clients in seeking for the most suitable insurance coverage for their needs at competitive rates. With years of experience in handling insurance and claims, we are confident in managing your insurance needs and ensure that you are satisfied with our services. If you are interested to learn more about our services, visit us at www.rafflesprovident.com.sg or contact us at +65 31457168.
With that, we have come to the end of this cyber insurance guide. Thank you for watching! We hope that you have gained a better insight with regards to cyber insurance policies. Stay tuned for more valuable content by subscribing to our channel. Don’t forget to share and like our video to support our efforts in educating the public on insurance policies. Please follow us on facebook and visit our website!
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