Cyberattacks on schools are on the rise; last year, they went up 18%. Having a dedicated Information Technology (IT) team and preventive tools aren’t enough to protect your institution. A cyberattack could still occur, leaving your school’s private data, finances, and equipment—not to mention information about your students and your families—at risk.
Cyber insurance adds a much-needed level of protection that positions your school to respond to a cyberattack. If an incident happens, you will have a professional response team at your disposal.
The proper response could safeguard money and data, guide you in legalities, and prevent substantial loss.
What Is Cyber Insurance?
Cyber insurance provides coverage in the event of a cyberattack or data breach—coverage that’s probably not included in your general liability insurance policy.
Though cyber insurance cannot prevent an incident from occurring, it can put you in the best position to thwart a cyberattack and minimize its impact—reducing your risk of long-term damage.
A policy can include coverage to help you investigate the incident, manage legal fees—which can include fines for improper compliance or paying ransoms to hackers—recover equipment, manage public relations, support individuals post-attack, and more.
Why Get Cyber Insurance?
Here are six reasons why schools need cyber insurance:
#1—Protect Privacy
Your school has a database of sensitive information about students and their families—student health records, financial information, and other sensitive data such as social security numbers.
Encrypting your system isn’t enough to protect this data. A cyber insurance policy can minimize the impact of a data breach and restore data.
#2—Ensure Legal Compliance
In the event of a data breach, your institution needs to follow legal protocol. Parents want to know that their children—and their data—are in excellent hands.
Having cyber insurance helps you manage your legal response. Not only does it ensure you comply with rules and regulations, but it can prevent your school from incurring hefty fines.
#3—Provide Funding
A cyber insurance policy can provide needed funding for cyber extortion, offering the ransom in a ransomware attack.
#4—Save Your School’s Reputation
If a cyberattack occurs, how your institution responds can make or break your reputation. A proper response can avoid a public relations nightmare, which can be more costly than the loss of equipment or payment of fines.
Additionally, it gives parents considering enrollment peace of mind that your school takes proactive steps to protect their family’s information.
#5—Safeguard Systems
Hackers can destroy your entire infrastructure. Cyber insurance covers the cost of hardware and software if it needs to be replaced, and the cost of consultants you hire to correct the problems.
It can cover bodily injury if someone is hurt or physical damage happens during an incident. It also helps pay for fines for improper compliance.
#6—Cover Downtime
If a cyberattack takes down your system for an extended period, a cyber insurance policy can cover these losses. Downtime can cost your school community a significant amount of money.
Eyes on Prevention
Taking a cyber risk assessment or consulting with a cyber insurance provider can give you peace of mind that you’re doing all you can to protect your data and infrastructure. The provider may be able to suggest additional preventive measures you should consider—which can be priceless in preventing a cyberattack and maintaining your school’s long-term cyber safety.
