Cyber insurance – a necessity for the post-COVID age

Inquirer Los Angeles / 08:49 AM July 08, 2021

Have you ever thought your laptop needs cyber insurance? After the recent cyber attacks, you may see more people and companies buying policies. Some realize that their devices contain sensitive information that needs constant protection.

First, we will explain why we need cyber insurance nowadays. Then, we will talk about how they work for businesses and individuals so you can choose the best policies. What’s more, we’ll teach you other ways to protect your data.

We used to marvel at how connected we are to each other. Unfortunately, this means getting closer to malicious people who steal sensitive information and harm devices. In response, we should consider all available means of security, such as cyber insurance.

Why do we need cyber insurance?

We need insurance for various purposes. For example, property insurance lets companies claim funds in case their buildings get damaged. If you drive, you might have one for your car.

But there’s a new threat that is becoming more common nowadays. Remember the Colonial Pipeline hack? It caused a huge gas shortage in the United States.

Many people collected car fuel in any container they had, even plastic bags. This resulted in gas prices spiking across several states. The average price in California hit $4.201!

In response, its company paid $5 million to the cyber attackers. There were numerous other cyber incidents, though. It’s nothing compared to the recent SolarWinds attack.

Russian hackers used that company to hit big names in the private and public sectors. These included Microsoft, Intel, the Treasury, and the Pentagon.

There’s no doubt that cyber attacks are now a huge threat. That’s why several firms became interested in cyber insurance. They need to keep their data and devices safe.

Cyber insurance for businesses

The most common type of policy is for companies. Insurance covers them against cybersecurity threats. Here are the common cyber insurance coverages:

Data recovery – This will restore or replace data and programs hit by hackers.
Loss of income and other expenses – It will cover the amount you would have earned if not for the hack. If the data breach shuts down operations, insurance may pay for it too. This is also known as cyber liability insurance.
Notification costs – Hackers could access customer information or data from other companies. In response, a business must inform its customers and partners about the business interruption. Insurance may cover the resulting expenses and credit monitoring.
Crisis management – A business may need to pay for other services to handle such an event. Insurance may cover fees for attorneys, computer experts, and public relations personnel.

You might think big companies are the only ones who need this type of business insurance. Yet, even small businesses face cyber risks nowadays.

Fortunately, insurance companies have solutions for small and large companies. Protect your business with the features that suit your needs and budget.

Should I get cyber insurance for myself?

When insurance comes to mind, you may think of life insurance. That covers expenses in case you get hurt. Have you ever thought of getting one for your laptop, though?

You might think you’re just an average person. Why would anyone want your personal information? Well, it’s much more valuable than you think.

Your PC and smartphone have so many details about you. Some people might be interested in them. Here are just some examples:

Personal photos
Credit card info
Contact number
Email address

Strangers can use your private info to scam you. Some may just max out your credit cards. Others might use your contact details to send annoying ads.

These are just a few examples of how someone could misuse your data. Fortunately, you could also get cyber insurance for yourself. It often has coverage for the following issues:

Cyber attack – This will pay for getting rid of viruses in your devices.
Cyberbullying – It helps you deal with online harassment that caused more problems.
Ransomware – Someone might lock your computer until you’ve paid them. This will cover services that can get your files back. If you paid the hacker, this would give you the same amount of money.
Data breach – You may have lost other peoples’ data. Someone might have stolen it or shared it without asking first. No matter what, this will cover the costs.
Online scams – Maybe someone used your bank money or identity without asking. This will cover the related costs.

Where do I purchase cyber insurance?

Many insurance companies now provide this type of policy. For example, Howden Group and AIG offer these options in the Philippines. You should plan before buying, though.

After all, you need the best features. But you still need to work with your budget. Here’s how you can choose the best cyber insurance plan:

Check your risks – Ask yourself the kinds of problems you’re trying to cover. Don’t just buy the latest features if you don’t need them.
Weigh the cyber insurance costs – As we said, compare your needs with your budget.
Compare different plans – Check all the insurance options. Don’t just stick to one company. You might get better features or lower fees.
Read reviews – You may have peers who have used the same services. Ask if they liked it or not.
Ask experts – See what the pros think. They can help you plan your insurance before buying. You might find features you should add or leave out.
Talk with your staff – Ask your IT team what your company needs. They work with you, so they know what your business needs.
Read the fine print – You might find terms that can be a problem in the long run. Perhaps they don’t specify the kinds of issues covered. If you’re not careful, it might become useless when an issue comes up!

Other ways to prevent cyberattacks

You shouldn’t stop with just getting cyber insurance. One wrong move, and hackers could get to your data! You should also make sure your employees are careful.

Some people may become careless due to routine. They might click on links without checking if they’re busy. Some could open a bad email while scrolling their inbox.

Tell them always to be careful when using the computers. You may want to put more steps whenever they use logins or messages. This lets them think first before opening stuff.

That way, they’re less likely to make mistakes. As an individual, you must also keep your info safe. Here’s how you can do it:

Change your password every few months.
Use long and strong passwords. They should have a mix of 12 letters and numbers.
Don’t save your credit card details online.
Before you buy from a website, read the reviews first. See if people liked or disliked the site. This lets you avoid potential issues.
Use safe payment methods. For example, credit cards are better than debit cards.
Always update your devices.
Make a copy of your files and documents. Put them in another storage, such as a USB flash drive. You may want to use a cloud service too.

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Final Thoughts

Nowadays, we’re finding new ways to protect data aside from cyber insurance. Believe it or not, you’ll find them in cryptocurrencies! Some of them could help you secure your data.

For example, Filecoin (FIL) lets you have backups in a crypto network. Even better, it could help you do this cheaper, easier, and safer. If you can, you might want to invest in cryptos too!

If not, perhaps you could invest in growth stocks? Specifically, AXA stocks seem to be a good option right now. After all, the company provides cyber insurance as well!