Cybersecurity and cyber insurance are two terms often thrown around with the ever-increasing use of technology. Businesses continue to find ways to utilize computers to store information, expedite processes, and provide value to customers.
Relying on technology in this way, however, does leave businesses particularly vulnerable to cyber attacks. As protections, companies implement cyber insurance policies and cybersecurity measures. But what’s the difference? And are they both important?
Cybersecurity vs. Cyber Insurance
As a modern business, it is crucial to consider how your operation may benefit from both cybersecurity and cyber insurance.
Cybersecurity
Cybersecurity measures are often the first line of defense. Your business should have proper systems in place for password protection, accessing sensitive data, and educating employees about scams such as phishing.
Cybersecurity is a set of practices to prevent hackers and cybercriminals from accessing data and company servers. If a cyberattack succeeds despite your security systems, cyber insurance will help keep your business safe.
Cyber Insurance
When a hacker evades cybersecurity measures, cyber insurance comes into play. In the aftermath of a cyber attack, your insurance policy determines how matters are handled.
Was there a data breach, and customers’ information has been compromised? Will there be a halt in company operations due to the attack? Often, cyber attacks result in costly monetary damages for the business and can even end in litigation.
Your cyber insurance policy will protect you from financial losses due to business interruption or disgruntled clients and customers.
Which is More Important?
For many types of businesses, it can be critical to have BOTH cybersecurity and cyber insurance in place. Talking with your commercial insurance agent can help determine where your organization’s cyber security and insurance are lacking and the best course of action moving forward.
Please contact Steve Longenecker (303-808-9351, x2) at Mountain Insurance: Longmont to discuss your business insurance coverage options in Longmont, CO, and our neighboring communities.
We give out $25 gift cards for referrals that become our insurance clients.
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