I recently attended the SC Security Congress in NY. One of the hot topics was cybersecurity insurance. As we’ve seen in the news, many companies are suffering from cyber attacks, and one of the mitigating solutions for these companies is to transfer the financial risk of a security breach to insurers.
There is a growing number of insurance companies offering this financial service. But is there really a need for it? I believe there is. Being hacked is no longer a matter of “if” but “when”. Every company will suffer a security breach in some form or another. Cybersecurity insurance will give a company an incentive to tighten up or better its security measures. While it cannot reduce the damage to a company’s reputation nor cover intellectual property theft and business downturn caused by an attack, it will lessen the financial damage to a company when hackers attack its site.