Cybersecurity is an essential part of running a business as it protects organizational assets against malicious internal and external cyberthreats. Companies house a treasure trove of data across an array of mobile devices, tablets, computers, networks, and servers. Losing that data to a breach can cost a business millions of dollars. While cybersecurity insurance can help companies survive such an expense, implementing cybersecurity technology can prevent successful cyberattacks.

Do I Need Hardware or Software Security?

The average cost of a data breach in 2022 reached a staggering $4.35 million. That number tends to grab every business owner’s attention. However, many aren’t tech-savvy enough to understand how hardware and software security differ.

Software Security Pros, Cons, and Examples

Anyone with a laptop or smartphone uses software security regularly. These devices come with built-in software that encrypts data and requires a password to unencrypt it to access it. Examples include antivirus programs, computer firewalls, and password managers. They are popular security options because they’re typically less expensive than hardware security and don’t require additional hardware to implement. However, it’s less secure than hardware security. The programs require frequent updates, which usually rely on the user to download and install. The data becomes extremely vulnerable if the person or business falls behind on software updates or a cybercriminal finds a bug to exploit.

Hardware Security Pros, Cons, and Examples

Hardware security protects physical devices against cyberattacks through an integrated circuit that encrypts and decrypts data. They can only perform a limited number of functions, which makes them significantly less vulnerable to corruption and breaches. A fingerprint scanner is an example of physical hardware security. Another common form of hardware security is a module with an integrated circuit that generates random numbers to encrypt and authenticate users rather than traditional passwords or PINs. Hardware security has a much higher upfront cost but offers much more robust protection against cyberattacks.

Businesses tend to use a mix of both securities to maximize their protections. However, cybercriminals constantly evolve their tactics, and no company can afford to neglect its cybersecurity. Cyber insurance is a critical part of insulating against external cyberthreats. Contact Windermere Insurance Group to discuss your cyber vulnerabilities and protection needs.