Cyber insurance is also renowned as cyber liability insurance or cyber security insurance. Nowadays, it covers financial losses that are incurred by a company as a result of breaches of data, ransomware attacks, and other cyber incidents. But What is Cyber Insurance? What is included in the policy, and what is not? Let us know it all.
Let us know the multiple factors that insurance companies should consider while determining the cyber insurance cost:
- The history of the company
- Customer files
- Demographics of a customer
- Terms and conditions of the policy
- All potential risks to exposure
- The company’s overall cyber security risk status
Inclusions
- If the cyber-attack takes all the computer systems offline, and the company loses revenue due to this, the compensation against lost profit during disruptions would be covered under the policy.
- The incident reports, forensic investigations, repairs or any other service required after a cyber-attack.
- It also includes litigation expenses; sometimes, legal representations for the insured company are provided.
- In case hackers steal any sensitive information, policies can help cover the recovery costs of informing customers and provide services like credit monitoring.
- In case cyber-attacks lead to regulatory investigations, the cyber policies include the cost of complying with the audits.
- Some cyber policies bear the costs of hiring a public relations firm or any other expenses required to repair the company’s goodwill.
- Some cyber policies also include ransomware payments, but nowadays, some of them are limiting this cost due to the high expense of ransomware.
Exclusions
- Losses arising out of Trading or Investments are not covered.
- Events happening before the policy is bought.
- Damage to property or physical harm.
- Losses occurring due to trading or unauthorised trading
- Violation of rights secured by patents
Who Needs Cyber Insurance Coverage?
It is said that cyber insurance coverage is meant only for big corporates, but it is not so. Anyone who wants themselves to be covered against cyber-attacks and their repercussions can get cyber insurance.
Conclusion
Cyber security insurance is important to ensure robust protection in this online era. It plays an essential role in providing financial protection against cyber-attacks and safeguarding the business. It allows us to focus on the core operations without taking stress about the potential cyber threats.