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As understood in PMP Course online - there are always opportunists out there looking to capitalize on the latest victims and cybercrime is no exception. Cybersecurity insurance seems to be the rage these days. Lloyds of London – those insurers who cover Keith Richards’ fingers and your favorite college quarterback’s arm who decides to stay in college one more year – are big into cybersecurity insurance. The problem is, they are insuring the loss - insurance against data loss, malware and service attacks, data breached and cybercrime – not helping prevent cybercrime in anyway.
Focusing on the consequences, not the causes
So, who pays? Well,
consumers pay, I guess. Chubb – a leading provider of insurance coverage – also
offers insurance against cybercrime…as do most large carriers and many smaller
insurers popping up and entering the lucrative cybercrime insurance market.
Companies seeking out insurance against cybercrimes are focusing on the
consequences of cybercrime, not the causes, by purchasing liability and
errors-and-omissions insurance.
As understood in PMP Course online, “Unfortunately, many companies don’t
realize that whether they experience a data security breach isn’t as much a
matter of if it will happen as when. When a security breach happens, you’ll
need comprehensive protection from an insurer that specializes in handling
cyber risks, offers a full suite of integrated insurance solutions to help
minimize gaps in coverage, and understands how to tailor coverage to your
business.” Chubb’s insurance covers direct loss, legal liability, and
consequential loss resulting from cyber security breaches.
As the cost of
cybercrime losses rises and the frequency of cybercrime events also rises, the
costs of those pay-outs will be passed on to consumers of all insurance
policies with companies like Chubb. It’s called free enterprise. One such
insurer - Marsh & McLennan - which offers cyber insurance, has estimated
that the market for cybercrime insurance doubled last year to as much as $2
billion.
Is C-level
representation the answer?
I personally
propose a C-level cybersecurity representation now in organizations of any
notable size handling any sensitive data and information and running any
projects with sensitive data for important clients that they want to keep long
term. After all, it only takes one breach for you to lose many customers and
gain a certain reputation that you really don’t want to have. And if you’re one
of those corporations and you haven’t been hit yet…don’t worry…you will. Given
the prevalence of digital terrorism, cyber-attacks are a question of when not
if.
Summary /
call for input
What are your
experiences with cybercrime? Has your organization been affected? What risk or avoidance
measures are you taking or planning to take to guard against cybercrime? Has
there been a consideration to make a cybersecurity position a C-level
representation?
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