Understanding IT Insurance VS Cybersecurity Insurance
Building a business is not for the faint of heart. For those who want to see their business dreams come true and reach success, it takes a lot of hard work and the right tools to help them accomplish their goals.
One of the most important and fundamental tools that will help you on your journey is having the right insurance. When you are working as a business owner, insurance helps to protect your dreams and hard work
The fees associated with legal action against you or your business can be substantial, and insurance helps to ensure that you learn from these experiences and aren’t taken out by them. In fact, for many start-ups, insurance is one of the most fundamental and important aspects of the business infrastructure.
For any kind of business that works in the digital sphere and especially a business that works with technology, having the right kind of insurance in place can seem tricky.
The truth is, that the field of technology is growing so rapidly that insurance providers are constantly working to provide the best coverage for new emerging technologies.
This is one of the biggest reasons why the best way to ensure that you are getting the coverage you need is to work with a provider that has experts in your field. If you are part of a crypto-currency or blockchain technology business, then get coverage from an insurance company that knows the ins and outs of this new field.
Technology is one of the fastest-going markets on the planet and you don’t have to be on the cutting edge of it in order to warrant coverage that can protect you. In fact, the digital word represents a considerable amount of risk thanks to the prevalence of cyber attacks and cybersecurity risks.
If you have been wondering what the difference between IT insurance and Cybersecurity insurance is, then here is everything you need to know.
IT Insurance – Big Picture
IT simply stands for Information Technologies, and IT insurance is a big picture term that covers a plethora of insurance types that protect tech companies. For companies that work in technologies, there can be a lot of risk because of the amount of liability that they represent.
For example, IT insurance can be as general as GL (General Liability), and EPLI coverage, and it can also be as specific as cyber security insurance and E&O insurance. IT companies are going to be companies that don’t just deal with the digital world by specializing in some way within the digital atmosphere.
These could be software developers, SaaS providers, or even eCommerce businesses. Any kind of company that deals with customer data of any kind can benefit from some form of IT insurance.
What Is Cyber Security Insurance?
Cyber security insurance is a form of IT insurance that helps cover legal fees associated with cyber attacks. Any kind of company that acquires customer data is at risk of cyber attack.
This coverage helps to mitigate the risk of cyber attacks by providing insurance that covers the cost involved in recovering from a cyber-security breach or some similar event.
In the event of a cyber attack, not only can your company be held liable for the data that is stolen by the customer, but there can also be a huge cost associated with the repair. Fixing damaged security networks, or repairing faults in your cyber security can be costly.
Cybersecurity insurance helps to ensure that companies that suffer from an attack can safely not only deal with the liability but also deal with the cost of damages to their systems.
One of the benefits of working with an insurance company that offers professional insight into cyber security insurance is that you can get access to breach experts. This can be a huge help to any company that suffers from a cyber attack that leaves their security networks damaged.
Aside from the damage done to a company’s security network, cyber attacks on average cost small to medium-sized businesses around two million dollars. The world is moving more and more to a digital plain of existence, and cyber-attacks are not only becoming more frequent, but more effective.
Cybersecurity insurance is different from E&O (Errors and Omissions) insurance in that it does not cover claims made against a company by a client. E&O is another important insurance type to have for businesses that deal with technology, however, it does not help to cover the cost of a cyber attack. Instead, this kind of insurance protects the company as a form of professional liability for technology-based businesses.
Conclusion
The world of cyber business is a bright and exciting one with a lot of promise. Technology is one of the fastest growing markets on the planet and it represents a lot of promise for startups especially.
Don’t let the fear or threat of cyber attacks keep your business from accomplishing success, instead, get the coverage you need to grow and reach your goals!
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