The Need for the Employment of Cyber Insurance, By Global Corporate Bodies in Mitigating the Unavoidable Risk of Cyberattacks

EFG Ajayi

Published on: 2024-02-17

Abstract

Cyber security insurance, popularly known as cyber insurance, is a recent child of necessity, borne out of the imminent and unavoidable cyberattacks that have become pervasive and practically a menace, which humanity must live with, either personally in private life or under official circumstances, because of its prevalence in our daily lives. Cyberattacks are an epidemic and a noisome pestilence to the human race. No matter how prepared a company is in training staff members or how equipped it is, no one knows when cybercriminals will strike with cyberattacks because they are always on the prowl. The issue of cyber security is in the province of sociolegal insurance, regulated by privacy law. Even though cyberattacks are common, the extant legal research and publications manifestly reveal that most corporations have not and are not prepared to undertake cyber insurance cover, that is, the latest brand of insurance; thus, it is relatively new and has its origin in errors and omissions insurance, a special brand of insurance that provides cover against defects and faults for service companies. Errors and omissions insurance is the policy cover offered to companies that sell physical products. Cyber insurance has a lot of merits, but perhaps its newness and non-realization of the inherent benefits account for low adoption and patronage even in developed countries, which are ICT-centric due to high technological advancement. It is on the basis that corporate bodies appear apathetic to cyber insurance that this article strongly advocates that companies should embrace and give deserved attention to cyber insurance because it is in the best interest of corporations all over the world and for the overall well-being of society, so as not to truncate the economic and industrial wheels from running as expected, for the good of all.