In an increasingly digital world, cyber-attacks and data loss risks have grown exponentially for individuals and businesses. While we are all exposed, the level of protection and insurance coverage options vary significantly between personal and business insurance. In this article, we explore how digital risk coverage can make a difference and protect our personal and professional lives.
Digital risk coverage for individuals
Digital risk coverage options are still developing in personal insurance. At present, home and liability insurance usually offers some limited coverage for digital protection. However, these coverages fall short of directly compensating for the financial damage a cyber-attack or loss of essential data could cause. Some insurances include assistance with specialised technicians in the event of a digital attack or loss of data on electronic devices. This type of assistance can help restore information, protect equipment from future attacks and provide guidance on how to handle risky situations. However, personal insurance generally does not offer financial compensation for losses resulting from such attacks, nor does it cover the economic impact that a cyber-attack could have on a person’s life.
Therefore, coverage of digital risks in the private sphere is limited and depends largely on the guarantees offered by the insurance company. For this reason, individuals should be especially cautious with their personal information online, using security measures such as strong passwords, two-factor authentication, and frequent backups.
Companies and individuals can protect themselves against cyber-attacks
Digital risk coverage for businesses
However, the situation is different in the business environment. Companies are exposed to a much higher volume of digital risks and are legally obliged to protect third-party data, including customer, employee, and supplier information. Therefore, coverage in this sector is much more developed, with specific solutions that protect the company, its data, and the people involved.
Entrepreneur responsibilities: safeguarding third-party data and information
Cybersecurity is a responsibility that no business can ignore. Companies must protect the data they handle and act with the necessary diligence to avoid vulnerabilities. Data breaches can result in civil and administrative liabilities that can be costly for the business. However, despite all efforts, there is always the human factor: unintentional mistakes can leak sensitive information, exposing the company and its customers to severe risks.
To minimise these risks, employers must promote training and prevention in cybersecurity. Courses and protocols can help employees identify threats and handle data with caution. However, as there is always a degree of vulnerability, more and more companies are opting to transfer part of this risk to specific liability insurance for digital risks.
Insurance solutions for companies
Cyber liability insurance caters to the needs of businesses in today’s environment. These policies cover the direct damages caused by cyber-attacks and offer additional assistance and services that can make a difference in a company’s recovery. Some of the most common features include:
24/7 technical assistance
In the event of a cyber-attack, the insured company has a team of experts available 24/7 to mitigate the effects and restore the affected system.
Regulatory compliance
Data security and compliance with legislation are essential requirements for any business. Cyber liability insurance can include consultancy and audits to ensure that the company complies with data protection regulations (such as GDPR in Europe) and has adequate security measures.
Reimbursement of costs arising from cyber-attacks
A cyber-attack can involve significant recovery costs. These insurances cover the costs for remediation, data recovery, additional protective measures, and possible compensation to customers or third parties affected by the data breach.
Specific insurance policies exist for certain business-specific risks. Both individuals and companies need to understand the limits of their insurance and find solutions for their particular cases. At Dylsi, we are committed to advising you and offering the best options so that you can protect yourself, your family or your business from digital risks. If you have questions about digital risk coverage, our team is here to help you find the solution that best suits your needs.
