We see a wide range of enterprises adapting to new security methods to prevent cyberattacks and security breaches in the cybersecurity sector. Multi-factor authentication is a new emerging technology trend. As Multi-Factor Authentication becomes more adaptable to almost every technology, we discover that our technologies are only one step closer to preventing cyberattacks and unauthorized users from accessing your technology’s system and data. However, if we are concerned about security and incurring losses if an unauthorized user gains access to your technology system and data, you may wonder if there is a cybersecurity insurance policy, and there is.
What is Cyber Insurance?
The cybersecurity industry is about to get a new and adaptable deployment. As we see cybersecurity emerge as a new and emerging industry, there are numerous components that make it whole and complete. For example, cyber insurance is a specialty insurance product designed to protect businesses from risks associated with the internet, as well as risks associated with information systems and general business operations.
Why is Cyber Insurance Important?
Cyber insurance policies enable businesses and large corporations to recover from cyberattacks and financial losses caused by cyber events and incidents. Furthermore, computer security coverage contributes to the costs of corrective action, such as the payment of defense advisers, investigators, crisis communicators, and customer credits or refunds.
What Are Some Specific Areas of Coverage?
Cyber insurance has specific areas of coverage in which can best fit and or best suite your company. The 4 categories in which are described in cyber insurance for coverage are network security and privacy liability, network business interruption, media liability, errors and omission, and sensitive customer information.
- Network Security and Privacy Liability: Data breaches in a company will be caused by a failure in network security. Hackers pose a wide range of threats to a wide range of businesses in a wide range of industries. With this type of coverage, you are protected against losses resulting from a failure to protect a customer’s personally identifiable information. Having a solid network security policy management will allow you to protect all of your devices and the customers you serve.
- Network Business Interruption: Businesses can recover from income loss and other extra expenses during computer network outages with this type of coverage.
- Media Liability: By creating and disseminating content, we can meet the needs of our media clients. Therefore, constantly updating methods of content will allow for them to prevent risk of threat and or attacks.
- Errors and Omission: This type of coverage allows businesses to protect themselves from lawsuits alleging that they made errors in the professional services they provide.
Why are cyber insurance companies requiring MFA?
Many organizations now require cyber insurance coverage due to the increase in attacks, the increasing sophistication of these incidents, and the potential financial impact. Because of an increase in security-related losses and increased demand for coverage, premiums for these plans have risen. Cyber insurance is inexpensive and can save your company from massive losses. The average cost of a total data breach in the United States in 2021 was $4.24 million, with the healthcare industry being the most expensive at $9.24 million on average. Breach costs in the United States were highest and most expensive this year, totaling $9.05 million.