As the political tensions between the United States and North Korea intensify further it is evident that the next world war will be fought online via cyber warfare. And as all businesses have become extremely dependent on the use of technology especially internet and cloud, the next world war could cost all these businesses heavier than anticipated.
This is where companies offering cyber insurance are witnessing a business opportunity to explore. As cyber insurance policies cover losses arising from cyber attacks, businesses which treat data and digital assets as life blood are seen rushing to seek a policy or two.
In general, cyber insurance cover a business against privacy breach liability, cyber extortion, business interruption loss, liability from multimedia and public relation costs, legal expenses and data theft liability.
If data is stolen or hacked, the insurer will pay all the incurred costs on behalf of the insured if a law suit is filed in the court of law. This is where taking a cyber insurance cover for a company makes complete sense.
However, due to lack of awareness, companies are treating the cyber insurance cover as an obligatory expense in their IT budget, instead of a mandatory expenditure. This mindset is also preventing companies from adopting key cyber security initiatives.
In order to mitigate the risks associated with cyber attacks on businesses, the Trump government is planning to bring in an executive order which makes it mandatory for SMBs to take a cyber insurance cover. The white house is also planning to lower taxes to companies which cover their digital assets with cyber insurance. The plan is to encourage companies to follow cyber security standards along with a cyber insurance cover.
This, in turn, will help firms keep themselves well protected from risks associated with cyber attacks of any form.