In 2020, we adjusted to a global pandemic. Many businesses were not prepared to face this new reality but were forced to respond quickly to ensure their operations continued. The steep rise in the number of people working from home not only added strain to organizations’ IT teams, but also compliance departments. This quick evolution comes with inherent risk. The cyber-crime industry is unfortunately booming, taking full advantage of the potential gaps in cybersecurity that result from this new normal. Many of the cyber risks that this situation has presented are well known – phishing, malware, and other other forms of cyberattack.
Despite your mitigation efforts, what if a breach still occurs?
Tech companies are often more exposed than their clients, and the necessary insurance for cyber protection does not always cover them for the services they provide. These companies need to seek an insurance solution that not only understands the core of their business but can also protect them from potential liability exposures. In addition, operational jurisdiction and risk location can add to the challenge since many policies, if locally sourced, can only cover in that territory. Therefore, if you are dealing with clients in other countries, your business might be exposed to unforeseen risks, allowing lawsuits to be filed in another country without any insurance protection in place.
How can you ensure your company is fully protected?
Since markets change regularly – and, as we all saw in 2020, the changes can be unexpected and dramatic – it is of paramount importance that your business engages the services of an insurance professional to conduct a full risk assessment every year. This assessment will evaluate your current operations and your planned expansion, as well as review all insurance coverages to ensure there are no potential gaps or overlaps in coverage. Should additional coverage be required, an insurance professional will be able to assist you in sourcing the right protection, and if the assessment finds that you are paying too much for coverage, they will help you find a more affordable solution.
It is likely that more and more companies are going to be moving to an increased work-from-home model, so it is safe to assume that the services of those in the tech industry are going to be increasingly in demand. Therefore, it is vitally important that any organizations that operate within this industry have the right insurance in place, allowing them to capitalize on this emerging opportunity.
Editor’s note: Clements has partnered with ISACA to offer members insurance solutions for expats in 170+ countries and local nationals in 70+ countries. Find out more about ISACA membership benefits here.
