New ways of working and doing business raise new risks – and call for new forms of insurance coverage. Penetration testing insurance is one form of coverage that an ever-increasing number of organizations find they need. Here’s what companies need to know.
What is penetration testing?
Penetration testing occurs when a testing firm tests the boundaries of your digital security systems. Like a predator testing the fence around a sheep pen, the cyber security testing firm systematically probes your system for weak points. When they find one, they flag it, allowing you to address it before hackers exploit it.
What does penetration testing insurance do?
Penetration testing firms perform their work in good faith and to the best of their ability, but they cannot guarantee they will find every weak point in your cybersecurity “fence.” If they miss something despite a diligent search, you may be unable to hold the testing firm liable if a hacker later exploits the overlooked vulnerability.
Penetration testing insurance provides a safety net. It ensures that penetration testing companies can do their work to the best of their ability, knowing they won’t get caught up in litigation later. It also ensures that your company has protection if something gets missed – or if hackers develop a new, unforeseen method of breaching your defenses.
What happens if we don’t have penetration testing insurance?
Without penetration testing insurance, your company bears the full cost of the losses associated with a cyber attack. These costs may range from loss of business funds to steep government fines or lawsuits from customers or clients. These costs can be enough to shutter a business if the cyber attack is sufficiently broad in scope.
In addition, some penetration testing firms may hesitate to work with you unless you can both rely on your penetration testing insurance coverage. This further increases the risk that you won’t know about a vulnerability until after a hacker has used it to do damage.
If you have questions about penetration testing insurance or any other form of coverage, don’t wait! Get in touch with the team at Odell Studner today.
We’ll help you understand how various forms of coverage apply to your business and choose the policies you need. Reach out to us today to learn more!