Ransomware that encrypts vital data and halts production processes, digital theft of business data, or deepfake attacks aimed at obtaining money transfers – cyberattacks pose a serious threat to nearly every business. According to recent statistics, last year 80% of companies were victims of data theft, espionage, and sabotage due to cyberattacks, causing economic damage amounting to 148 billion euros. Furthermore, 52% of all companies see their existence threatened by a successful cyberattack.
Against this backdrop, many companies are considering securing themselves with cyber insurance. To understand what such insurance covers and what to consider before signing up, the digital association Bitkom has released a new guide titled “Cyber Insurance and Security”. This guide is now available for free download and provides comprehensive information and advice.
“Cyber insurance can be an important component in protecting against cyberattacks and their consequences. It's not just about covering financial damages; cyber insurance can also help with prevention and play a role in damage control following an attack”, says Felix Kuhlenkamp, Security Policy Advisor at Bitkom.
Prevention is a Key Topic
The guide begins with an overview of different cyber threats that businesses face and their potential impacts, which can range from direct financial consequences like ransom payments and consulting fees to losses in reputation. After a brief review of legal regulations on cybersecurity, a separate chapter plays through a fictional cybersecurity incident, outlining what actions the company should take at what time.
The focus then shifts to the cyber insurance itself, including what damages it covers and what measures companies must take for prevention if they want to enjoy insurance protection. It specifically discusses common opinions and prejudices about cyber insurance and explains what to look out for in a cyber policy, such as regarding the amount of damage and exclusion criteria.
