Cyber insurance provides coverage against losses and expenses resulting from cyberattacks, data breaches, and other digital threats that can disrupt business operations:
Data Breach Response: Cyber insurance covers costs associated with responding to a data breach, including notifying affected individuals, providing credit monitoring services, and hiring forensic experts to investigate the breach’s cause.
Business Interruption: This insurance compensates businesses for lost income and extra expenses incurred due to a cyber incident that disrupts normal operations, such as ransomware attacks or denial-of-service (DoS) attacks.
Cyber Extortion: Cyber insurance may cover expenses related to cyber extortion attempts, such as ransom payments to regain access to encrypted data or prevent a threat actor from leaking sensitive information.
Third-Party Liability: Cyber insurance includes coverage for legal fees, settlements, and damages if your business is sued for failing to protect customers’ personal data or causing harm to third parties due to a cyber incident.
Cyber Incident Response Planning: Some policies offer proactive services, such as cybersecurity assessments and incident response planning, to help businesses prepare for and mitigate cyber risks.
Cyber insurance policies vary in coverage limits, exclusions, and specific terms, so it’s essential for businesses to assess their cyber risks, implement robust cybersecurity measures, and choose a policy that aligns with their risk management strategy.