As technology continues to develop at an exponential pace, new opportunities for business also come with heightened risks. Cybercrime and other malicious digital threats are plaguing all sorts of companies, with this form of business risk only set to increase in future.
In fact, a 2014 survey by PricewaterhouseCoopers (PwC) found that more than two-thirds (69 per cent) of executives in the US are worried that cyberthreats will impact on their organisation's growth. More than half (59 per cent) said they are more concerned about cybersecurity now than they were in the past.
It's no surprise, then, that more and more companies are investing in the tools, technology and people to fight cybercrime and protect their business. In addition to these measures, taking out the right business insurance policy also makes complete sense in an increasingly volatile world.
Insurance's place in the battle against cybercrime
The CRO Forum recently published its 'Cyber resilience: The cyber risk challenge and the role of insurance' report, which outlines that insurance plays a "key role in improving society's overall resilience to cyber risk".
Specifically, the report highlights the importance of developing a strong, holistic cyberrisk management framework, noting that insurance should form a major component of this. With human error (as opposed to system or technological flaws) responsible for a growing proportion of cyberrisks, the right insurance can help mitigate against unpredictable threats that may arise, the report adds.
In terms of the exact role insurers can play, the CRO Forum notes that the industry can help by "incentivising best practice" among clients. This can be achieved through means such as risk transfer and premiums, aggregating and interpreting loss data and offering additional capabilities with their products.
Companies looking to insure themselves against cyberthreats should therefore look out for these, and similar, features when seeking a policy.
Expert advice essential when selecting business insurance
It's a sensible decision for any company to seek professional advice before taking out an insurance policy. Small businesses in particular will appreciate the assistance of an informative guide when choosing from among the many products in the market.
These companies usually opt for an all-encompassing small business package – which may or may not include cover for cyber-related threats. Speaking with an insurance broker will ensure your business gets a policy suited for its exact requirements.