Does My Company Need Hacker Insurance?
Responding to the increasing emphasis on information safety, insurance companies have begun offering businesses specialized coverage for on-line security risks, called technology coverage, "hacker insurance," or "network risk insurance."
Global Information Assurance Certification has an excellent discussion on the elements of hacker insurance, along with the types of coverage and a list of providers.
Before purchasing hacker insurance, ask yourself the following:
- Does the size of my company warrant the expense of a hacker insurance policy?
For most large-scale companies, hacker insurance might be a good idea. For small businesses, the cost of the insurance policy may outweigh the risk involved.
- How dependent is my company on Internet operations?
If your company's on-line presence constitutes a large part of business, hacker coverage becomes more necessary.
- Do I house a database of important company or customer information that can be accessed through the Internet?
Remember, hacker insurance is likely necessary only if your company maintains a database of sensitive information that could be accessed by hackers.
- What is the lump sum of money I will lose (per hour) if access to my website is blocked?
If the value is small, coverage is probably unwarranted.