With technology advancing at an incredibly fast pace, IT and tech firms may become more susceptible to cyber attacks. Cyber insurance plays a crucial role in allowing companies to meet customer and client needs while mitigating the risks that come along with doing so. 

Why do IT and tech companies need cyber insurance coverage?

IT and tech companies need cyber insurance as it can drastically reduce their cyber risk. 

Cyber attacks are becoming increasingly more complex, which is why it is essential to have the right coverage in place, no matter what size business you have. 

Some of the best policies include coverage against ransomware, data breaches, social engineering and many more potential cyber risks that could financially ruin many businesses. 

How the IT industry is at risk of cyber attacks

The IT industry attracts malicious cyber attacks for a number of different reasons:

  • Valuable data – This kind of data includes personal identification information and intellectual property (IP), both of which hold important details such as bank account details, access credentials and personal data.

    Stolen IP can be a huge problem for the tech industry with the stolen information being shared by cyber attackers for phishing attempts and identity theft.

  • The use of new technology – IT firms tend to be the frontrunners for using and implementing new technology. Unfortunately, this can lead to cybersecurity problems since the technology is typically more vulnerable than services that are already tested.

  • Cloud technology – Tech businesses are usually the biggest users of cloud softwares and technology to collaborate on projects and share files. However, any misconfiguration or unintentional share of data can make private files and information public.

  • Open IT systems – Tech businesses tend to have an open structure, meaning they usually have remote workforces across a number of different time zones, working from different browsers and on different devices.

    This large network can be harder to protect against unauthorised access and companies who work from home or who have hybrid environments must be able to deal with unvetted devices connecting to their network. 

  • Third-party risks – Hackers can take advantage of third-party service providers to access IT networks. Tech companies should be implementing third-party risk management programs to help prevent these attacks and minimise the risk they can have on their business.
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What does cyber insurance cover?

With Stanmore, your cyber insurance will include coverage for losses incurred through a cyber attack. Although the plan can vary depending on your needs, the main areas which are covered by cyber insurance include the following listed below:

  1. Recovering personal information – Cyber insurance helps organisations to restore the personal information of their affected customers and clients.

  2. Data breaches – This covers incidents where personal information is stolen or accessed without proper authorisation.

  3. Data recovery – A cyber insurance policy usually enables businesses to recover any data that has been compromised by an attack.

  4. System damage repair – The cost of repairing computer systems will be covered as well.

  5. Attack remediation – A cyber insurance policy can help pay for legal fees incurred through violating various privacy policies. 

As a standard, cyber insurance can help you manage the situation by using experienced and trusted incident responders who will help you to manage the communication with your customers, suppliers and the information office. It also helps by minimising any disruption to your business by offering financial support and helping with legal ramifications. 

How can Stanmore Insurance help your IT and Technology firm?

At Stanmore Insurance, we have been helping a wide number of different sectors with their insurance requirements for over 60 years, including those who have IT and technology firms. 

We have developed a great relationship with many reliable and trusted insurance providers which we will compare to find the best insurance product for you and your business. 
If you have a business or you’re a new start-up looking for cyber insurance, get in touch with our team today to see how we can help you keep your IT systems safe.