How Cyber Insurance Safeguards Against Cyber Threats
Data breach and privacy coverage
This covers costs associated with a data breach, such as legal expenses, forensic investigations, notification costs, credit monitoring for affected individuals, PR crisis management, and regulatory fines and penalties.
Cyber extortion coverage
This covers ransomware attacks, where hackers encrypt systems and demand payment to unlock them. The insurance pays the ransom and any costs involved in negotiating with the hackers.
Business interruption
Cyber attacks can disrupt normal business operations. This coverage pays for income loss and extra expenses during the period that systems are down. For example, if a retailers website is taken offline by an attack.
Cyber crime
This covers direct losses due to things like phishing scams, social engineering fraud, and funds transfer fraud. For example, if an employee is duped into wiring money to a hackers account.
Network security liability
This protects against damages to third parties arising from security weaknesses in the insureds systems and failing to prevent cyber attacks. For example, if a companys poor security exposes customer data.
Cyber terrorism
This provides coverage for income loss and damage arising from cyber attacks on critical infrastructure by terrorist groups.
cyber insurance provides financial protection and access to resources in the event of various types of cyber attacks and data breaches.