More than a policy: The role of cyber insurance for companies

Cyber attacks continue to be one of the biggest business risks worldwide. You may be thinking: "We have a strong IT team and invest a lot in security. Isn't that enough?" Unfortunately, no. There is no such thing as absolute security, and this is where cyber insurance comes in. It is much more than just a policy: it offers financial protection in the event of a claim and helps companies to become more resilient against digital threats.

If the worst comes to the worst - what then?

Imagine this: A medium-sized company with 1,500 employees falls victim to a ransomware attack. Production comes to a standstill, sensitive data is stolen and delivery deadlines cannot be met. In addition to the loss of production of around 7.5 million euros per month, further costs are incurred:

IT forensic experts must investigate the attack,
lawyers provide support with legal issues,
the infrastructure must be restored,
and communication with customers and partners becomes a challenge.

Without cyber insurance, this can quickly become a threat to your company's existence. With insurance, however, these costs are absorbed and the company can concentrate on getting back on its feet - without having to constantly look at the figures.

What security measures insurers expect

In order to be able to take out cyber insurance, insurers expect preventative security measures to be implemented. These include:

Regular updates and patches,
Multi-factor authentication,
a solid backup concept,
trained employees through security awareness programmes,
and emergency plans that have been tested.

Sounds like a lot of effort, doesn't it? But it is precisely these measures that reduce the risk of becoming a victim of an attack in the first place. Should an incident nevertheless occur, cyber insurance provides financial protection. In addition, better contract conditions such as lower premiums or higher sums insured can be achieved.

Quick help through expert networks

An additional plus: Many insurers offer access to networks of specialists such as IT forensic experts, crisis communication experts or legal experts. In an emergency, professionals are immediately available to assist with crisis management. However, it is important that the service providers are a good fit for the company. You should therefore check in advance whether the insurer's experts meet your own requirements or whether it would be better to rely on your own partners.

Conclusion

Cyber insurance is more than just protection against financial losses. It helps to improve a company's security strategy, makes risks calculable and strengthens resilience to ever-increasing digital threats.

More than just a policy: the role of cyber insurance for companies