Cyber risk insurance for independent professionals
The risk is often in the smallest details. And one miscalculation can result in big financial claims. Technology has become an integral part of our daily work. As a freelancer, you probably do a lot of your work digitally: you manage customer data, communicate via email, use online tools, and perhaps even manage sensitive data. But all that digital convenience also comes with risks. Cybercrime is always lurking. Fortunately, you can protect yourself against it with cyber risk insurance. But when is such insurance really necessary? And is it mandatory? We explain that and more in this article.
What is cyber risk insurance?
Cyber risk insurance protects you against the consequences of cyber incidents such as hacking, system intrusion, data theft, and cyber attacks. You are also covered if you (unintentionally) cause damage to someone else, for example because your hacked laptop spreads malware. Unlike other insurance policies that cover physical damage or professional errors, this insurance focuses on digital damage and liability. Cybercrime can affect anyone, from large companies to independent professionals. A small lapse in attention, such as clicking on the wrong link or using an unsecure Wi-Fi network, can be enough to cause significant damage. Cyber risk insurance ensures that you are not left to bear the costs alone.
Why is cyber risk insurance important for independent professionals?
Cyber risk insurance is important for independent professionals because you work digitally on a daily basis and are responsible for the security of your systems and data. Cyber attacks are becoming increasingly sophisticated and can cause significant financial and operational damage. With cyber risk insurance, you are not only insured against this damage, but you also receive immediate support from experts to get the situation under control. This prevents an incident from shutting down your business or damaging your reputation, allowing you to continue doing business with confidence.
What is and isn't covered by cyber risk insurance?
Cyber risk insurance covers a lot, but not everything. The following is usually covered:
- Security breaches and data leaks
- Cyber attacks such as ransomware or phishing
- Costs for recovery, legal assistance, and reputation repair
- Liability for damage to third parties
The following is not covered:
- Damage caused by intent or gross negligence
- Known vulnerabilities that you have not addressed
- Physical damage without a cyber component
- Violations of laws and regulations outside the cyber domain
Is cyber risk insurance mandatory?
Cyber risk insurance is not legally required for self-employed professionals and freelancers. However, more and more clients in sectors such as IT, healthcare, administration, or consulting are requiring cyber insurance before you can start working. Even if it is not mandatory, it is wise to be well insured. A single small data breach or a simple click on the wrong link can lead to claims, loss of revenue, or damage to your reputation. Without cyber risk insurance, you bear that risk entirely yourself, which can affect both your business and your personal assets. Insurance also shows that you are a professional and responsible entrepreneur, which inspires confidence in clients.
Doing business with certainty
At Striive, we believe that you as an independent professional should be able to do business without worries. Therefore, through our platform you can not only find challenging assignments, but also make use of our Striive Professionals Services. With these services you can tick off in one go all the practical matters that you would like to have taken care of. Appropriate and flexible for your assignment. Just like you.
Want to know more about how you, as a zzp'er, can be properly insured on your way? Feel free to contact us or check out our services.