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Cyber risk insurance<\/em><\/p>\n Did you know the average cost of a data breach in 2020 was $2 million? (1<\/a>)<\/span><\/p>\n Remember that data breach is just one of several cyber risks. Ransomware, on average, costs $84,166. (2<\/a>) Other cyber risks include BYOD policies, insider threats, Distributed Denial of Service (DDoS) attack, and more. Interestingly, with a significant part of the workforce now working remotely, such risks have escalated to newer heights.<\/span><\/p>\n Big Names Failing at it<\/strong><\/span><\/p>\n Indeed, the best way to thwart such cyber events is to have multiple layers of security and well-defined cybersecurity policy.<\/span><\/p>\n But even then, with the sophisticated skills and techniques cyber attackers employ, there\u2019s no way to ensure 100 percent guarantee. Was there a way to ensure that, names like Big Basket, Dunzo and WhitHat Jr \u2013 India\u2019s top startups \u2013 wouldn\u2019t have fallen victim to cyber-security attacks very recently. (3<\/a>)<\/span><\/p>\n This list of top brands cyber-attacked is long and includes the likes of Adobe, LinkedIn, and Yahoo. (4<\/a>)<\/span><\/p>\n What Losses Does the Company Incur?<\/strong><\/span><\/p>\n In the aftermath of cyberattacks, the company in question has to deal with various types of financial losses\u2026 Losses that are not viable to incur for the small and medium-sized businesses. In fact, as a result of a data breach, 60 percent of small companies go out of business within six months. (5<\/a>)<\/span><\/p>\n Code Spaces is a very fine example of this. A renowned source code services provider, in 2014, it saw a DDOS attack, which massively hit its market credibility and financial position. Eventually, it had to shut down due to that attack. (6<\/a>)<\/span><\/p>\n There are several other direct and indirect costs that cyberattacks bring for the company. For small and medium-sized businesses, these costs can be too much to incur.<\/span><\/p>\n How to Defend Your Company against Cyber Risks?<\/strong><\/span><\/p>\n Of course, the first step is to always ensure such events never take place in the first place. Invest extensively in cybersecurity.<\/span><\/p>\n Following, if indeed something goes bad, you must stay financially prepared to handle that. This is where cybersecurity insurance<\/strong> comes into play. Generally put, it a type of business insurance that financially protects the business in events of any cyber-attack or incident. It covers the loss and damage that business suffers as the result of the said event.<\/span><\/p>\n If your business has online operations, you should ideally invest in cybersecurity insurance. The coverage amount will depend on your risk exposures, as well as several other factors. For instance, if you\u2019re in finance and collect others\u2019 sensitive details (like their PAN card number, credit cards details), the coverage should be much higher vs. if you run a blog and just ask for visitors\u2019 name and email address.<\/span><\/p>\n To learn more about cybersecurity insurance, please go here<\/a>.<\/span><\/p>\n\n