There is more reliance on the internet, web transactions, and cloud-based systems than ever before. And with that comes the need to keep sensitive information and data secure. One method is through cyber and privacy insurance. But is cyber and privacy insurance necessary? In short, yes, for any company that relies on technology.

What is cyber and privacy insurance?

This refers to the means of protecting your company’s computer systems, devices, programs, and networks from falling under cyber attack. These types of attacks are evolving almost as quickly as technology, and business owners need to stay on top of safety precautions to keep all company information safe from any type of data breach. This includes personally identifiable information (PII), protected health information (PHI), company data, trade secrets, and intellectual property.

Why is it critical?

A data breach can mean compromising the secure information of your company and your customers. When consumers no longer trust your services, it can harm your reputation, revenue, and even the longevity of your company. In short, cyber and privacy insurance is critical to your credibility and success.

The COVID-19 pandemic has accelerated our reliance as a society on websites and online services, and many employees now find themselves working remotely in a virtual desktop environment. More data and sensitive information is being stored in cloud-based services, and simple firewalls or antivirus software will no longer suffice as the only way to keep information secure.

Is cyber and privacy insurance necessary?

Any type of insurance provides a layer of protection. Cyber and privacy insurance helps reduce your company’s risk of a financial situation that could be difficult to recover from due to a cyber attack and data breach. It helps you offset the costs associated with recovery from this type of situation. Any type of company that relies on technology (which is most compies these days) should invest in cyber and privacy insurance.

Other ways to keep your company cyber-safe

Firewalls and encryption techniques are still ways to help protect against a breach. It’s also important to train your employees at all levels of the organization to recognize and avoid potential scams.

Let us help!

At Odell Studner, we provide specialized consulting to help companies protect themselves against risk. Alongside our insurance brokerage services, we guide you to take action to reduce risk and increase growth and profitability. To learn more, please contact us today.