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ARTICLE · 13 SEPTEMBER 2019

Penny Wise, Pound Foolish: Necessity Of Getting Cyber Insurance

As cybersecurity attacks and data breaches have become increasingly prominent and costly, it is essential that organizations have the proper policies and procedures to protect themselves against significant financial and reputational harm

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Introduction

As cybersecurity attacks and data breaches have become increasingly prominent and costly, it is essential that organizations have the proper policies and procedures to protect themselves against significant financial and reputational harm. However, these attacks and breaches cannot be eliminated entirely, even with the most robust security safeguards. Therefore, cybersecurity insurance can act as a last line of defense by protecting an organization from significant financial harm when a breach ultimately occurs. Effectively, businesses can use cybersecurity insurance as part of a holistic approach to managing cybersecurity attacks and data breaches. This article will discuss the importance of cyber insurance policies by providing an overview of the serious threats organizations commonly face today, what cybersecurity insurance is and what it offers, and the limitations of cybersecurity insurance policies.

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About Dentons

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Specific Questions relating to this article should be addressed directly to the author.

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