There are so many risks nowadays that the more insurances you have for everything you own, the better. Now, why do people get insurance? Simple! To diminish a risk and if any accidents occur due to this risk, then your insurance company has you covered. Now, not only people should be getting insurances for them such as life insurances or for their business, there is also another type of insurance I want to talk about in this article and it is called cyber risk insurance. We all own technological devices or own websites and this insurance is meant to cover all the risks relating to that. Some of these risks include hacking and viruses among other things. Remember, your private information is worth gold to someone out there, and they are willing to do just about anything to get it!
What is it?
Ok so, this type of insurance covers risks for two basic things. The first one is that it covers you from any damage that might result if you of your company are involved with activities of the electronic type. For example, an e-commerce company is in the type of industry where they should definitely get a cyber and privacy insurance. As they sell online, they might be at higher risk than others of credit card fraud among other things. The other risk these types of insurance covers is the one relating to the collection of data and what might happen to it. Let’s go back to the e-commerce example, since lots of selling online is involved here, customers must give out information such as their credit cards, names, address, etc. and these companies must ensure that this information does not reach a third party.
How is my private information put at risk when engaging in online activities such as e-commerce?
Like I mentioned before, as a buying customer, you must give private information relating to your credit cards and address and all this data is collected and stored in the company’s internal electronic network. So, the main goal of a hacker would be to ensure they manage to get inside that internal electronic network. In that way, they can retrieve that information and buy other stuff online with your credit card information. This is where a cyber and foremost insurance comes in and prevents any further damage.