Important Elements of a Cyber Security Insurance Cover


The internet has become the backbone of all significant activities around the globe. From financial transactions to shopping for your favourite merchandise, the internet is a major part of the experience from start to end. Physical-world is slowly finding an alternative in the virtual space using the internet.

Where the internet is such a crucial part of our lives, it undoubtedly receives threats, whether internal or external. Gone are the days where a traditional approach of protecting threats was effective. New and innovative ways are devised to put cybersecurity at risk.

When uncertainty looms putting your entire business at threat, a cyber security insurance cover can come handy. Not only for business, but also your personal information is available for the hackers to eavesdrop. 

What is Cyber Security? 

Cybersecurity is the practice of protecting computers, servers, mobile devices and other networks from malicious attacks. These can be either from an internal or external source. 

What are the common measures to enforce cybersecurity?

Dealing with cyber threats is challenging as it does not involve any tangible resources. These cyber-attacks are solely carried over the internet. However, enforcing cybersecurity practices beforehand will help protect any confidential data. It can be through – 

Scanning: Scanning includes the activity of enforcing best practices on the various devices used like network devices, individual terminals and configuring firewall settings along with limiting the access of individual IPs. All entry points in the network system should be monitored periodically for any flaws in security features.

System security Planning: After analysing the risk areas, a cost-effective and adoptable plan should be recommended. 

Physical Security Planning: Authorised personnel should only be allowed to access sensitive information about the organisation. This way, any internal threat can be limited while continuing to ward off any external threats using a system security plan.

Cyber Insurance: One of the benefits of cyber insurance coverage is to cover any losses due to theft of data. It is an effective way that can help rebuild the system network and manage losses too.

What are the elements of cybersecurity?

Application Security: As the name suggests, it is a way to protect applications from any external threats and vulnerabilities. A development phase involves access to the application over a network. Security measures can minimise the modification and access to sensitive data, thereby preventing theft. 

Information Security: Information security is the way to protect the information assets irrespective of how the information is transmitted. These programs are built with an objective to maintain confidentiality, integrity and availability of business data. It authorises the viewing and managing the confidentiality of data.

Network Security: Network security ensures there is no entry for any external source to access the data without authorisation. It is the most critical aspect of cybersecurity as most times hackers look for flaws or shortcomings in the network security to get access into the system. A cyber insurance policy might not cover the cost of damages if there are deficiencies found in the network security of your IT infrastructure.

Operational Security: It includes the processes and decisions for handling and protecting assets containing data. The permission each user has when accessing a network and how the data is stored is classified under operational security. 

While these are the elements of cybersecurity, at every insurance renewal, they must be monitored to consider the requirement of the business organisation. Any additional requirements should be addressed to keep the security at its highest level. Always make it a point to peruse the policy wordings of your desired plan to get a better understanding of the extent of your coverage and claims process. With the digital transformation, online general insurance makes for a more convenient alternative to address all your insurance need.