A Good Technology Insurance Company Can Help Offset Tech Problems
Dan Levenson November 12, 2014
Corporations nowadays cannot do without the information technology that allows them to streamline and improve their work, which is why it is important to have as many securities as possible to ensure that nothing terrible overwhelms business. An article in the Business Insurance website dated October 28, 2014, however, discloses that while many executives are aware of the dangers of cyber risks, only half actually buy insurance. The article features a survey that reveals telling details, such as:
“If there was any doubt as to the existence of a data security epidemic, 2014 likely changed that,” according to the Zurich Insurance and Advisen survey. “This is the year that it became abundantly clear that no business, government or individual was immune to the threat of an attack.”
However, the survey found great uncertainty concerning preparedness, with only 62% of respondents being certain that their companies had a breach plan in place, which is down 10 points from last year’s survey. Moreover, the survey found that only 52% have a multidepartmental information security risk management team, down from 56% last year and 61% in 2012.
The survey also found that the percentage of companies purchasing cyber liability insurance leveled off this year, with 52% of respondents indicating that their company had purchased cyber liability insurance.
Businesses, even the smallest of them, should be more willing to protect their assets. Insurance might not prevent an actual cyber-attack from happening, but it can preserve business continuity. An accommodating technology insurance company such as InsureYourCompany.com should be able to secure hedges for a business against whatever risks the company could face in the future.
It is not enough to chart the growth of a business; owners also need to plan for the worst. Risk management arrangements can help businesses come up with contingency plans in the event of a crisis such as a cyber-attack or a network crash, but it will not save a company from having to pay for the total cost of the damage. Businesses that have high profile clients, in particular, will need a way to cover for the expensive losses they might suffer, or risk losing their clientele and even more money in the process. Tech insurance for small business owners might sound like a tall investment, but it can be a lifesaver when the need arises.
(Source: While executives more aware of cyber risks, only half buy insurance, businessinsurance.com, Oct. 28, 2014)