Cyber Insurance and its needs
Every year many companies have been losing revenue amounting to millions of dollars due to cyber crime and security breaches on information stored in their computers. Examples of the crimes that contribute to this loss include information that goes to the wrong hands, destroyed data, vital information being accessed by the wrong people, and viruses' attacks. Others include monetary fraud and active wire tapping. Many of those who hack a system do this due to motivation by challenge to access information in a system not meant for them. In spite of the presence of the so called firewalls which play a major role in curbing stealing of data or its destruction, computer security is still not at its best. A lot needs to be done to curb the menace and control its spread.
This is the reason why e commerce insurance is very much needed to help and address this problem. Cyber insurance is vital because it helps companies avoid going into financial losses resulting from website hacking. Companies are therefore left with no option but to insure their websites against such online crimes. This is where cyber insurance comes in. The need to protect your e commerce business is of paramount importance when one comes to the realization of the dangers posed by website hackers and the amount of money that is likely to be lost.
Ordinary insurance companies rarely have insurance packages covering such crimes since many of them offer policies only based on physical assets. Many of them are at odds to describe cyber risks insurance cover and those few that may opt to cover such risks will not include loss incurred due to online security lapses.
Online crimes linked to advertising, content duplication and monetary fraud are all unknown to the ordinary insurance companies. They do not cover losses incurred due to a hacked system, or compensate a business that has been closed as a result of these hackers.
Advantages of cyber insurance.
Today many insurance companies are aware of the benefits of technological advancement on the growth of online businesses and are warming up to them by shielding them from risks resulting to cyber crimes. They have now come up with packages specifically directed to online businesses.
One of the advantages of having your business covered against cyber crimes is that your business is secured from website hacker's intent at destroying it. This means that you do not run your business under the fear of losing it to online criminals.
Financial loses that may result from such hacks are well taken care of.
The other main advantage is that your data is protected against an attack by viruses. This is because many insurance companies now offer protection for your online information against virus attacks.
These and many more make cyber insurance the ultimate solution to curbing online crimes committed against e businesses.This is why its advisable to insure your online business against such crimes to avoid loses and imminent closure.
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