As cyber attacks and data breaches are on the rise and organizations are spending more money, resources, and time on risk management, it is essential that companies be properly prepared with a solid understanding of the most efficient and effective security measures. Preventative measures through cybersecurity are a must for helping organizations secure their network defenses and implement best security practices. A good response plan can involve cybersecurity insurance, a policy designed specifically to trigger when a security incident results in a financial loss, either due to business interruption, litigation, or provision of additional services such as credit monitoring for customers or employees.
While cybersecurity insurance can help protect organizations after a data breach or network security failure has occurred, it should never be a substitute for cybersecurity and risk management. Since cybersecurity insurance is often misunderstood, here’s a brief look at its benefits and purpose, as well as the best practices for organizations to be better equipped and able to respond in the event of a cyber-attack.