Every business needs a good protection against the threats emanating from anywhere in the world in today’s connected world of Internet communications. Incidentally even as most enterprises have been investing heavily in information security technologies, cyber-based attacks continue to occur. That is where cyber insurance comes into play. But its being a relatively new domain, cyber insurance is surrounded by a few myths that potentially threaten to put a ’STOP‘ to its wide-scale adoption.
One of the common cyber insurance myths can be the widely held notion of immunity. For example, a company may say, “A breach won’t happen to us.” This is a classic case of how organizations negligently cling to false assumptions about the security of their own information assets. The hacking attack on Target Systems in the last December and several high profile breaches in the previous years are some of the recent examples that reveal a different reality at the ground level. The most notable hacking of 2014 arguably happened in February when St. Joseph Health System in Georgia and Texas potentially compromised more than 405,000 records. All of it was done by a single server.
These and such real business incidents clearly demonstrate that no business can claim to be immune to hacking attacks today. As a precautionary measure, an organization must follow a few good practices to keep their information assets safe.
As the IT security trends suggest, the question with respect to information breaches is not about ‘whether’ but ‘when’. This article published by Property Casualty 360, debunks the common myths about cyber insurance and suggests approaches to deal with apprehensions expressed by the potential insurance customers.
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