Tag: Cyber insurance

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Pros and Cons of Cloud Computing

Cloud User insurance and Cloud Provider Insurance

What are the Pros and Cons of Cloud Computing?

Cloud computing is the new big thing in Information Technology. Everyone, every business will sooner or later adopt it, because of hosting cost benefits, scalability and more.

This blog outlines the Pros and Cons of Cloud Computing, Pros and Cons of Cloud Technology, Faqs, Facts, Questions and Answers Dump about cloud computing.

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What is cloud computing?

Cloud computing is an information technology paradigm that enables ubiquitous access to shared pools of configurable system resources and higher-level services that can be rapidly provisioned with minimal management effort, often over the Internet. Cloud computing relies on sharing of resources to achieve coherence and economies of scale, similar to a public utility.
Simply put, cloud computing is the delivery of computing services including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet (“the cloud”) to offer faster innovation, flexible resources, and economies of scale. You typically pay only for cloud services you use, helping you lower your operating costs, run your infrastructure more efficiently, and scale as your business needs change.

What are the Pros of using cloud computing? What are characteristics of cloud computing?

  • Trade Capital expense for variable expense
  • Benefit from massive economies of scale
  • Stop guessing capacity
  • Increase speed and agility
  • Stop spending money on running and maintaining data centers
  • Go global in minutes

  • Benefits of AWS Cloud Computing - Pros and Cons of Cloud Computing
    Benefits of AWS Cloud Computing


  • Cost effective & Time saving: Cloud computing eliminates the capital expense of buying hardware and software and setting up and running on-site datacenters; the racks of servers, the round-the-clock electricity for power and cooling, and the IT experts for managing the infrastructure.
  • The ability to pay only for cloud services you use, helping you lower your operating costs.
  • Powerful server capabilities and Performance: The biggest cloud computing services run on a worldwide network of secure datacenters, which are regularly upgraded to the latest generation of fast and efficient computing hardware. This offers several benefits over a single corporate datacenter, including reduced network latency for applications and greater economies of scale.
  • Powerful and scalable server capabilities: The ability to scale elastically; That means delivering the right amount of IT resources—for example, more or less computing power, storage, bandwidth—right when they’re needed, and from the right geographic location.
  • SaaS ( Software as a service). Software as a service is a method for delivering software applications over the Internet, on demand and typically on a subscription basis. With SaaS, cloud providers host and manage the software application and underlying infrastructure, and handle any maintenance, like software upgrades and security patching. Users connect to the application over the Internet, usually with a web browser on their phone, tablet, or PC.
  • PaaS ( Platform as a service). Platform as a service refers to cloud computing services that supply an on-demand environment for developing, testing, delivering, and managing software applications. PaaS is designed to make it easier for developers to quickly create web or mobile apps, without worrying about setting up or managing the underlying infrastructure of servers, storage, network, and databases needed for development.
  • IaaS ( Infrastructure as a service). The most basic category of cloud computing services. With IaaS, you rent IT infrastructure—servers and virtual machines (VMs), storage, networks, operating systems—from a cloud provider on a pay-as-you-go basis
  • Serverless: Running complex Applications without a single server. Overlapping with PaaS, serverless computing focuses on building app functionality without spending time continually managing the servers and infrastructure required to do so. The cloud provider handles the setup, capacity planning, and server management for you. Serverless architectures are highly scalable and event-driven, only using resources when a specific function or trigger occurs.
  • Infrastructure provisioning as code, helps recreating same infrastructure by re-running the same code in a few click.
  • Automatic and Reliable Data backup and storage of data: Cloud computing makes data backup, disaster recovery, and business continuity easier and less expensive because data can be mirrored at multiple redundant sites on the cloud provider’s network.
  • Increase Productivity: On-site datacenters typically require a lot of “racking and stacking”—hardware setup, software patching, and other time-consuming IT management chores. Cloud computing removes the need for many of these tasks, so IT teams can spend time on achieving more important business goals.
  • Security: Many cloud providers offer a broad set of policies, technologies, and controls that strengthen your security posture overall, helping protect your data, apps, and infrastructure from potential threats.
  • Speed: Most cloud computing services are provided self service and on demand, so even vast amounts of computing resources can be provisioned in minutes, typically with just a few mouse clicks, giving businesses a lot of flexibility and taking the pressure off capacity planning. In a cloud computing environment, new IT resources are only a click away. This means that the time those resources are available to your developers is reduced from weeks to minutes. As a result, the organization experiences a dramatic increase in agility because the cost and time it takes to experiment and develop is lower
  • Go global in minutes
    Easily deploy your application in multiple regions around the world with just a few clicks. This means that you can provide a lower latency and better experience for your customers simply and at minimal cost.

What are the Cons of using cloud computing?

  • Privacy: Cloud computing poses privacy concerns because the service provider can access the data that is in the cloud at any time. It could accidentally or deliberately alter or delete information.Many cloud providers can share information with third parties if necessary for purposes of law and order without a warrant. That is permitted in their privacy policies, which users must agree to before they start using cloud services.
  • Security: According to the Cloud Security Alliance, the top three threats in the cloud are Insecure Interfaces and API’s, Data Loss & Leakage, and Hardware Failure—which accounted for 29%, 25% and 10% of all cloud security outages respectively. Together, these form shared technology vulnerabilities.
  • Ownership of Data: There is the problem of legal ownership of the data (If a user stores some data in the cloud, can the cloud provider profit from it?). Many Terms of Service agreements are silent on the question of ownership.
  • Limited Customization Options: Cloud computing is cheaper because of economics of scale, and—like any outsourced task—you tend to get what you get. A restaurant with a limited menu is cheaper than a personal chef who can cook anything you want.
  • Downtime: Technical outages are inevitable and occur sometimes when cloud service providers (CSPs) become overwhelmed in the process of serving their clients. This may result to temporary business suspension.
  • Insurance : It can be expensive to insure the customer and business data and infrastructure hosted in the cloud. A cyber insurance is necessary when using the cloud.

  • Other concerns of cloud computing.

      • Users with specific records-keeping requirements, such as public agencies that must retain electronic records according to statute, may encounter complications with using cloud computing and storage. For instance, the U.S. Department of Defense designated the Defense Information Systems Agency (DISA) to maintain a list of records management products that meet all of the records retention, personally identifiable information (PII), and security (Information Assurance; IA) requirements
      • Cloud storage is a rich resource for both hackers and national security agencies. Because the cloud holds data from many different users and organizations, hackers see it as a very valuable target.
    • Piracy and copyright infringement may be enabled by sites that permit filesharing. For example, the CodexCloud ebook storage site has faced litigation from the owners of the intellectual property uploaded and shared there, as have the GrooveShark and YouTube sites it has been compared to.

What are the different types of cloud computing?


  • Public clouds: A cloud is called a “public cloud” when the services are rendered over a network that is open for public use. They are owned and operated by a third-party cloud service providers, which deliver their computing resources, like servers and storage, over the Internet. Microsoft Azure is an example of a public cloud. With a public cloud, all hardware, software, and other supporting infrastructure is owned and managed by the cloud provider. You access these services and manage your account using a web browser. For infrastructure as a service (IaaS) and platform as a service (PaaS), Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (GCP) hold a commanding position among the many cloud companies.
  • Private cloud is cloud infrastructure operated solely for a single organization, whether managed internally or by a third party, and hosted either internally or externally. A private cloud refers to cloud computing resources used exclusively by a single business or organization. A private cloud can be physically located on the company’s on-site datacenter. Some companies also pay third-party service providers to host their private cloud. A private cloud is one in which the services and infrastructure are maintained on a private network.
  • Hybrid cloud is a composition of a public cloud and a private environment, such as a private cloud or on-premise resources, that remain distinct entities but are bound together, offering the benefits of multiple deployment models. Hybrid cloud can also mean the ability to connect collocation, managed and/or dedicated services with cloud resources. Hybrid clouds combine public and private clouds, bound together by technology that allows data and applications to be shared between them. By allowing data and applications to move between private and public clouds, a hybrid cloud gives your business greater flexibility, more deployment options, and helps optimize your existing infrastructure, security, and compliance.
  • Community Cloud: A community cloud in computing is a collaborative effort in which infrastructure is shared between several organizations from a specific community with common concerns, whether managed internally or by a third-party and hosted internally or externally. This is controlled and used by a group of organizations that have shared interest. The costs are spread over fewer users than a public cloud, so only some of the cost savings potential of cloud computing are realized.

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Cloud User insurance and Cloud Provider Insurance

Cloud User insurance and Cloud Provider Insurance

Cloud User insurance and Cloud Provider Insurance

In this blog, we are going to explore the following topics and provide some suggestions and recommendations:

As cloud user, cloud customer, company storing customer data in the cloud, you probably have a lot of personal or private data hosted in various infrastructure in the cloud. Losing that data or having the data accessed by hackers or unauthorized third party can be very harmful both financially and emotionally to you or your customers. A cloud User or Customer Insurance can protect you against data lost or stolen data. Practically, the cloud computing insurance is a cyber liability policy that covers web-based services. Before looking for a customer insurance in the cloud, you need to clarify “What data should the insurance cover and under which governing laws?“, “What data can be considered a loss?” . The good news is : as cloud adoption is increasing in the insurance industry, insurers have the opportunity to better understand their operations models and to implement tailored insurance solutions for cloud.

Cloud Data loss can happen in the following forms:

First Party Losses: losses where the cloud provider incurs damages. Those types of losses include:

  • Destruction of Data
  • Denial of Service Attack (DOS)
  • Virus, Malware and Spyware
  • Human Error
  • Electrical Malfunctions and Power Surges in data centers
  • Natural Disasters
  • Network Failures
  • Cyber Extortion

Each of the above exposures to loss would result in direct damages to the insured, or first-party loss.

Third-Party Losses – damages that would occur to customers outside of the cloud provider. These types of losses include:

  • Breach of Privacy
  • Misuse of Private Personal Information
  • Defamation or Slander
  • Transmission of Malicious Content

The above exposures could result in a company being held liable for the damages caused to others (liability).

Cyber insurance is a form of insurance for businesses and individuals against internet-based risks. The most common risk that is insured against is data breaches. … It also covers losses from network security breaches, theft of intellectual property and loss of privacy.

Data Compromise coverage insures a commercial entity when there is a data breach, theft or unauthorized disclosure of personal information. … Thus Cyber Liability covers both the expenses to notify affected individuals of data breaches and the expenses to make the insured whole for their own damages incurred.

Some insurance companies that specialize in Cyber Insurance include:

Contact an Independent Insurance Agent near you that writes Cyber Insurance and ask them to get multiple quotes for your business.

However, a more effective risk management solution might be loss control rather than financing. If you encrypt your data at rest and set up and adopt a process of automatic regular backups, and geographically distribute those backups , then you have effectively minimized the potential costs of loss.

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Cyber Insurance is not yet standardized as many other forms of commercial insurance. Therefore, breadth of coverage and pricing can vary widely.

Below is AWS commitment to data privacy:

  • Access: As a customer, you maintain full control of your content and responsibility for configuring access to AWS services and resources. We provide an advanced set of access, encryption, and logging features to help you do this effectively (e.g., AWS Identity and Access Management, AWS Organizations and AWS CloudTrail). We provide APIs for you to configure access control permissions for any of the services you develop or deploy in an AWS environment. We do not access or use your content for any purpose without your consent. We never use your content or derive information from it for marketing or advertising.
  • Storage: You choose the AWS Region(s) in which your content is stored and the type of storage. You can replicate and back up your content in more than one AWS Region. We will not move or replicate your content outside of your chosen AWS Region(s) without your consent, except as legally required and as necessary to maintain the AWS services.
  • Security: You choose how your content is secured. We offer you strong encryption for your content in transit and at rest, and we provide you with the option to manage your own encryption keys. These features include:
    • Data encryption capabilities available in AWS storage and database services, such as Amazon Elastic Block Store, Amazon Simple Storage Service, Amazon Relational Database Service, and Amazon Redshift.
    • Flexible key management options, including AWS Key Management Service (KMS), allow customers to choose whether to have AWS manage the encryption keys or enable customers to keep complete control over their keys.
    • AWS customers can employ Server-Side Encryption (SSE) with Amazon S3-Managed Keys (SSE-S3), SSE with AWS KMS-Managed Keys (SSE-KMS), or SSE with Customer-Provided Encryption Keys (SSE-C).
  • Disclosure of customer content: We do not disclose customer information unless we’re required to do so to comply with a legally valid and binding order. Unless prohibited from doing so or there is clear indication of illegal conduct in connection with the use of Amazon products or services, Amazon notifies customers before disclosing content information.
  • Security Assurance: We have developed a security assurance program that uses best practices for global privacy and data protection to help you operate securely within AWS, and to make the best use of our security control environment. These security protections and control processes are independently validated by multiple third-party independent assessments

Microsoft Azure Data Privacy and protection Commitment

Google Cloud commitment to data privacy and security:

What types of business insurance are available?

  • Property and Casualty Insurance: Property insurance covers the physical location of the business and its contents from things like fire, theft, flood, and earthquakes—although read the terms carefully to make sure they include everything you need. Casualty insurance, on the other hand, covers the operation of the business, but the two are usually grouped together in policies.
  • Auto Insurance: Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company.
  • Liability Insurance: Liability insurance is insurance that provides protection against claims resulting from injuries and damage property.
  • Business Insurance: Business interruption insurance can make up for lost cash flow and profits incurred because of an event that has interrupted your normal business operations.
  • Health and Disability Insurance: Health insurance provides health coverage for you and your employees. This insurance covers your employees for the expenses and loss of income caused by non work-related injuries, illnesses, and disabilities and death from any cause.
  • Life Insurance: Life and disability insurance covers your business in the event of the death or disability of key owners.
  • Cyber Insurance: Cover Data loss, destruction of data, privacy breach, Denial of Service Attack (DOS), Network failure, Transmission of Malicious Content, Misuse of personal or private information, etc.
  • Crime & Employee Dishonesty Insurance: To cover your business for fraudulent acts committed by your employees, e.g. theft or embezzlement of money, securities, and other business-owned property and for burglary, theft, and robbery of cash and other representations of money, e.g. money orders, postage stamps, travelers checks, and readily convertible securities, e.g. bearer bonds;
  • Mandatory Workers Compensation Insurance: To cover your employees for injuries and illnesses sustained during the course of employment. This would include medical expenses and loss of income due to a work-related disability;
  • Transportation/Inland & Ocean Marine Insurance: To pay for loss of damage to property you own or are responsible for while it is being transported or shipped to or from customers, manufacturers, processors, assemblers, warehouses, etc. by air, ship, or land vehicles either domestically or internationally.
  • Umbrella Liability Insurance: To provide an additional layer of liability insurance over your primary automobile liability, general liability, employers liability, and, if applicable, watercraft or aircraft liability policies;
  • Directors & Officers Liability Insurance: To defend your business and its directors or officers against allegations that they mismanaged the business in some way which caused financial loss to your clients (and/or others) and pay money damages in a court trial or settlement;
  • Condos Unit Owners Personal Insurance & Landlord / Rental Property Insurance: Cover expenses that come from having a loss within your property. Whether the unit owner is living in their unit or not, it is your responsibility to ensure that your personal assets and liabilities are adequately protected by your own personal insurance policy. This coverage includes all the content items that are brought into a unit or stored in a storage locker or premises, such as furnishings, electronics, clothing, etc. Most policies out there will also cover personal property while it is temporary off premises, on vacation for example.
  • Landlord property coverage is to protect the property that you own within your rental unit, which includes but is not limited to, appliances, window coverings, or if you rent out your unit fully furnished, then all of that property that is yours.
  • Rental Property insurance coverage allows you to protect you revenue source. Your property is your responsibility and if you property gets damaged by an insured peril, and your tenant can’t live there for a month or two (or more), you can purchase insurance to replace that rental income for the period of time your property is inhabitable.

Do online businesses need insurance?

All businesses need insurance. Here are some suggestions:

Property Insurance: To cover your owned, non-owned, and leased business property (contents, buildings if applicable, computers, office supplies, and any other property that you need to operate your business) for such perils as fire, windstorm, smoke damage, water damage, and theft.

EDP Insurance: To cover your computer hardware and software for such perils as mechanical breakdown and electrical injury;

Cyber Property and Liability Insurance: To cover your business for its activities on the Internet. Cyber Property coverages apply to losses sustained by your company directly. An example is damage to your company’s electronic data files caused by a hacker/security breach. Cyber Liability coverages apply to claims against your company by people who have been injured as a result of your actions or failure to act. For instance, a client sues you for negligence after his personal data, e.g credit card numbers or confidential information is stolen from your computer system and released online.


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Loss of Income (Business Interruption) Insurance: To cover your business for the loss of income you would sustain because it was damaged by a covered peril under your property insurance, e.g. fire, windstorm, smoke damage, and theft;

Read this blog about insurance for E-commerce

Thinking of purchasing cyber insurance? Make sure the policy you choose covers more than paying ransomware. Paying cyber criminals should be a last resort. Your policy should include cleaning & rebuilding current systems, hiring experts, & purchasing new protections.

Resource:

1- Quora

2- AWS Data privacy

3- Does Cyber insurance makes sense?

4- What does cyber insurance do? What does it protect?

The purpose of cyber security is to protect all forms of digital data. Protecting personal information (SSN, credit card information, etc.), protecting proprietary information .(Facebook algorithms, Tesla vehicle designs, etc.), and other forms of digital data.

5- Cloud based Insurance Providers

* https://www.cloudinsurance.io

6- Understanding Cloud insurance

Cloud computing insurance is meant to protect a cloud provider. The implementation of a system and the preservation of important information comes with risks. If anything goes wrong, such as an outage at a critical time that results in business interruption, your client can hold you responsible and seek damages. Cloud insurance can not only provide compensation to your client as a result of a claim against you, but can also cover your legal defense and lost income.

7- Ransomware still dominates the cyber threat landscape in 2019: Europol report.

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Windows10: not available yet

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