Cyber attacks have the capability to completely destroy a business. The rates of data breach exploits have increased greatly during the year 2013. This has triggered a dramatic increase in purchase of cyber insurance. Right now, cyber insurance is focused mainly on breeches. However, experts predict this will change due to the high number of attacks. They say cyber insurance will begin to move the direction of focus to basic product concepts, and will focus less on the response to breach.
Any business can be threatened by a cyber breach. Many companies are too concerned with insuring their physical assets such as machines and plants. However, the most valuable part of the business is the data. Consider how destructive the results could be if a hacker was able to access the medical records located in a hospital’s online database. Therefore, there should be much more concern about insuring the data.
The cyber insurance industry is going to begin to pay very close attention to what happens after a cyber breach, and what happens when data is corrupted. There will be a steady incline in the interest and purchase of cyber insurance in the future. Specialists predict that cyber insurance will begin to cover all non-physical damage that results in economic loss.
Only about 20 percent of businesses have cyber insurance right now, but experts agree that in 10 years, cyber insurance will be the norm. Figuring out how to price policies is difficult in these early stages of cyber insurance. However, in a few years the industry will have more experience, and will begin to iron out the kinks.
Cyber insurance is something that every company should have due to the current dependence on technology. The hackers will continue to get better at what they do, and your business will continue to be in risk. If you have any questions regarding any form of insurance, please don’t hesitate to contact Chivaroli & Associates Insurance Services.
Chivaroli and Associates Insurance Services is a full-service brokerage firm specializing in the custom-design and placement of insurance and alternative risk funding solutions for your healthcare organization.