Guest blog by Jason Boney, Head of Sales at Cysurance
One of the most dynamic threats businesses face today is cyber risk. As an MSP, your clients likely face this critical exposure, regardless of what industry they are in. It has become such a unique peril that traditional insurance policies are now excluding it. In response, standalone cyber insurance is evolving with coverages and products tailored to the varying needs of companies in the modern economy.
The Risks to You and Your Clients
Companies today need sound cyber risk management – especially as COVID-19 and remote workforces redefine the threat landscape yet again. The heightened activity of hackers and the increased risk of insider threats put businesses at risk every day. The costs of a data breach can be catastrophic to a small business – 60 percent of those suffering such an incident go out of business within six months.
First-party cyber insurance will reimburse most of a company’s costs associated with responding to a breach, such as legal and forensic services that determine the extent of the event and the appropriate response. It also covers contractual requirements, notification of affected parties, the provisioning of identity monitoring services, PR firms and more. Insurance coverage for business interruptions, contingent business interruptions and extra expenses protects against lost revenue and remediation costs that result from your or your supplier’s downed network. Digital data recovery expenses can also be included.