These businesses may be frequent targets of hackers, but they don’t have to be victims or take on enormous financial burdens. Cyber Insurance for technology companies is the key.
What is Cyber Insurance and why do you need it?
Cyber Insurance is coverage that can protect you if someone believes you’re liable for a loss their business suffered and sues you for compensation.
Imagine that, despite your best efforts, hackers gain access to your network, steal customer credit card numbers, and use them to commit fraud (or are likely to do so). You’re then obligated to notify customers and take other costly steps to address the situation. You may also face one or more lawsuits from people and organizations that feel you’re at fault in the incident because you have failed to meet your responsibility to keep their data safe.
The Cyber Insurance provisions in a policy from THREE can shield you from many of the significant costs that typically arise from cyberattacks. That protection keeps your finances safe, but it does more than that. Knowing that your business is protected enables you to stay focused on your work without worrying about the risk posed by hackers. And, in some ways, that’s one of the most important benefits of Cyber Insurance.
Every tech company faces a high risk of data breaches and other incidents. In fact, some bad actors may see smaller tech companies as “easy” targets since they might not have the financial resources or expertise to defend themselves effectively from sophisticated attacks—phishing, malware, etc.
Why is Cyber Insurance important to tech startup founders, CTOs, and risk management executives?
Cyber insurance is particularly important to tech company founders, chief technology officers (CTOs), and risk management executives because they play key roles in protecting the organization—both digitally and financially.
If you’re a tech entrepreneur, you probably wear several hats and are looking for Cyber Insurance that’s easy to obtain and manage but provides solid financial protection. A THREE policy and its Cyber Insurance provisions can give you peace of mind, letting you focus on growing your business without the fear of the potentially crippling costs of cyber incidents.
If you’re a CTO, you’re likely responsible for overseeing your company's technology infrastructure and cybersecurity measures. You may also play a role in choosing coverage for various cyber risks that complements your efforts in designing and implementing digital defenses. It’s your job to ask questions like, “What does your Cyber Insurance not cover?” (all policies have exclusions) and to evaluate the reliability of insurance providers. THREE’s Small Business Advisors are an asset to CTOs, as they can answer your questions about the Cyber Insurance provisions of our policy.
If you’re a risk management executive, you know that cyber risks are among the most significant a tech business faces—especially given the regulatory requirements for data protection and cybersecurity. A THREE policy that has Cyber Insurance along with other critical protections for holistic risk management is an excellent solution. You can be confident that if a cyber criminal makes it past your organization’s defenses, THREE will be there with financial protection and support that makes it easier to handle an incident, safeguard the company’s reputation, and keep the business moving forward.
