What To Look For In a Cyber Insurance Coverage

Companies, regardless of size, face challenging cybersecurity tasks due to emerging technologies like IoT, leading to new cyber attack methods.

Attacks can harm brand reputation, cause financial losses, and regulatory issues.

Businesses need preventive measures.

Traditional insurance covers internal/external fraud and service-related liabilities, not ransom demands or data releases.

Cyber insurance plans
Cyber insurance coverage: Photo source (FIS Global)

Many organizations now supplement existing plans with Cyber Insurance Policies, safeguarding against diverse cyber risks and attacks.

What to look for in a Cyber Insurance Coverage

Insurance companies now provide cybersecurity insurance policies, but it’s essential to check if they cover all aspects of cyber attacks.

Cyber insurance should include first-party losses (organization-owned information systems) and third-party liabilities for comprehensive coverage.

A comprehensive Cybersecurity Insurance Plan should cover:

  1. Regulatory fines and investigations: Covers costs from regulatory inquiries and fines due to data breaches.
  2. Crisis management: Covers expenses for incident response activities after a data breach.
  3. Data protection: Covers costs of securing data post-breach.
  4. Security & privacy liabilities: Covers expenses from third-party claims due to network security failures or failure to protect personal data.
  5. Business network interruption: Includes loss of income and operating expenses during network security failures causing business interruption.
  6. Cyber extortion: Covers costs of responding to threats like ransomware attacks and investigating their cause.
  7. Online defamation: Covers expenses to restore reputation damaged by cyber attacks.
  8. Copyrights & trademark infringements: Covers losses due to copyright and trademark violations.

Guide To Cybersecurity Insurance

Cyber insurance is crucial for business success, but high demand makes qualification challenging.

Business leaders must grasp the cybersecurity insurance landscape and learn to overcome hurdles. Explore our whitepaper for expert insights and guidance.

Remember, cybersecurity insurance is a passive defense it complements, not replaces, a robust cybersecurity infrastructure.

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