With increased digitalisation, there comes an upsurge in cyber threats, thus escalating the vital role played by cyber insurance in our modern-day life. Cyber insurance has evolved as a prominent player in mitigating digital threats. It offers coverages like data breaches and security failures. More than just offsetting the financial deposits, it can come a long way in supporting businesses to meet their cybersecurity framework.
As we delve deeper into the digital world, the vulnerabilities to cyber threats also increase. It is estimated that cybercrime costs will rise to $6 trillion annually by 2021. In such a scenario, having robust cyber insurance becomes a necessity for all businesses, irrespective of size.
Often one of the most overlooked aspects of cyber insurance is the legal coverage. Legal proceedings arising from a breach can cost an organization millions. Cyber insurance provides legal coverages and covers all expenses related to legal defence.
Apart from providing financial support, cyber insurance also plays a pivotal role in managing crises. It extends support in cases like reputation management post a cyber breach, and in managing public relations. Support like this often becomes the backbone for organizations to rise above the crisis.
However, despite these myriad advantages, the adoption of cyber insurance is relatively slow. This could be attributed to the unfamiliarity of businesses with the concept of digital risk insurance.
To conclude, the importance of cyber insurance cannot be understated in today’s digital era. It offers a gamut of benefits extending from financial to crisis management. To withstand evolving cyber threats, adopting cyber insurance should be viewed not as an option but a need.
The Rising Importance of Cyber Insurance in the Digital Era
