How does cybersecurity cover insurance businesses?

Cybersecurity insurance is coverage that a business can purchase to cut down financial risks related to operating on the internet. The insurer takes up a portion of its client’s risks in exchange for a quarterly or monthly fee. Categorized as an emerging sector, cybersecurity insurance providers lack adequate data to devise risk models to ascertain insurance policy premiums, rates, and coverages. Additionally, their clients – companies that purchase cybersecurity coverage – are deemed, early adopters. Cybersecurity coverage can change, even by the month, as cyber risks are still a developing area of study.

Origins

The origins of cybersecurity are traced to errors and omissions (E&O) coverage, an insurance product that secures companies against defects and faults in their products or services. E&O insurance is akin to product liability insurance for a company’s digital or physical product. Cybersecurity coverage carries certain stipulations for E&O, but the latter does not concern breaches associated with third-party data.

Why Pay for Cybersecurity Insurance?

In 2011, hackers breached Sony’s PlayStation Network, divulging the personally identifiable information (PII) of user accounts numbering 77 million. This breach resulted in a 23-day outage where PlayStation users could not access the service via their consoles. As a result, Sony lost $171 million, a cost that they could have avoided if they had purchased cybersecurity coverage.

Cyber insurance policies are available for first-party coverage concerning losses at the buyer of the policy. Still, they are also available for third-party coverage concerning losses at companies or organizations that do business with the buyer of the policy. Cybersecurity insurance aids with remediation costs, including payment for customer refunds or credits, crisis communicators, investigators, and legal assistance.

Customers of Cybersecurity Insurance

The buyers of cybersecurity insurance are businesses that manage, store and create electronic data on the internet or on websites. The data includes credit card numbers, PII, customer sales, and customer contact information. As a result, these services also benefit e-commerce companies as downtime could lead to losing customers and revenue or sales.

A Career in Cybersecurity

Given the digitization of business in today’s day and age, there is no better time to take the field of cybersecurity, as a career, seriously. Cybersecurity professionals are charged with ensuring that company data stored on the internet is not compromised. The storage of personal information on the internet has led companies to increase the security of digital assets. A cybersecurity professional can find good employment opportunities in sectors as varied as the government, retailers, and even banks. The cybersecurity function within a business monitors activity, formulates security plans, installs firewalls, and secures the company’s network and files.

Some of the roles within a business, taken up by students of cybersecurity include Source Code Author, Security Engineer, Security Consultant, Penetration Tester, Forensic Expert, Security Director, Security Auditor, Security Analyst, Chief Information Security Officer, Security Architect, Security Manager, Cryptographer, Vulnerability Assessor, Security Administrator, Incident Responder, and Security Specialist.

To launch a career in cybersecurity, one will need to learn cybersecurity and gain a legitimate certification. There are many online courses that one can turn to gain an in-depth understanding of cybersecurity. As covered earlier, one can then choose the desired niche within cybersecurity before transitioning to senior roles within the cybersecurity function of a business.

Let’s dive into specific roles within the cybersecurity function of an organization:

Source Code Author

This role involves going through application source code in search of bugs or glitches that might impact security or functionality. Professionals in this role have to preempt a cyberattack and need to know the latest methods and technologies utilized by hackers.

Security Engineer

This role involves providing security to a business’s data. The Information Systems Security Engineers (ISSE) protect individuals, governments, and companies from hackers who devise new methods to gain access to databases.

Security Consultant

This role involves reviewing solutions, problems, and risks associated with security in businesses. The consultant can work on information technology security and physical security, aiding organizations with their security requirements.

Penetration Tester

Also known as an ethical hacker, this role involves breaking into a computer system to test its security. The tester is acquainted with coding and also provides written reports to showcase test results.

Forensic Expert

This role, employed by governments and corporates, involves conducting a post mortem of a breach to understand how it occurred and determine who carried out the act based upon the evidence collected.

Security Auditor

This role involves evaluating the computer security systems of an organization or corporation to ensure cyber criminals cannot breach the entity’s security infrastructure. The auditor provides detailed reports on enhancements due and effectiveness of current infrastructure.

Security Analyst

This role oversees the digital security of a government agency or a company. Personnel will have to conduct a thorough analysis of the security protocols and policies to ascertain weaknesses in the entity’s security infrastructure.

Security Director

This senior role provides oversight of personnel and operations associated with a company’s security team. One is eligible for such a role if they have spent several years working in cybersecurity, preferably as a penetration tester or an auditor.

Cryptographer

This role involves coding security systems, algorithms, and ciphers. Personnel in this role have complete oversight of the codes that build a company or government’s security infrastructure.

Security Manager

This senior role is for experienced personnel who are certified and who have also conducted several systems and technical audits. Personnel in this role will have to lead security teams and take decisions on resource allocation for the benefit of the company or entity.

Security Architect

This senior role involves overseeing the creation of systems, bringing up new security requirements for the organization if necessary, and managing the organization’s security team. Personnel gets chosen for this role if they possess the credentials and requisite experience in information security.

Chief Information Security Officer (CISO)

This senior role involves overseeing the security procedures and policies of the entire company. Personnel in this role will have to know the latest technologies and trends in cybersecurity. A CISO will have to work along with a Chief Information Officer (CIO), who oversees the information technology function of an organization.

Conclusion

To sum up, cybersecurity is an extremely important concern for entities as varied as governments and corporates. As a result, many organizations have begun to acquire cybersecurity coverage. These two trends confirm the robust demand in the employment market for cybersecurity professionals who have equipped themselves with cybersecurity certificate programs.