Understanding the two types of Coverage that Cyber Insurance Offers
Cyber Liability Insurance is necessary.
It will help your company comply with state regulations that require a business to notify customers of a data breach involving personally identifiable information.
Cyber-crime has become the world’s fastest growing crime and more often than not, cyber-attacks are not appropriately covered by your standard business or personal insurance. Too often victims of a cyber-breach do not have the financial ability to rebound and lack the knowledge and resources to restore their digital reputation.
What does Cyber Insurance Cover?
- Cyber, Privacy and Network Security
- Network Extortion
- Payment Card Loss
- Regulatory Proceedings
- Media Liability
- Cyber Incident Response
- Business Interruption/Loss of Income/Extra Expenses
- Digital Data Recovery
- Social Engineering
- Funds Transfer/Computer Fraud
Common Cyber Risks
Invoice manipulation, fraudulent funds transfer
Cybercriminals might manipulate your email or phone systems and lead you or your staff to pay fake invoices.
Phishing and Email Scams
Email-based attacks have skyrocketed since COVID as cybercriminals take advantage of the pandemic.
Ransom and Business Interruption
Shut-down due to a cyber incident such as a ransomware attack.
A cyberattack could impact your data backups as well, making it nearly impossible to restore your customers’ sensitive files.
Compromise of Customers’ and Supply Chain Data
Cyber incidents might lead to the compromise of customers’ or suppliers’ data and could damage your reputation.
Incidents might make your files and data inaccessible.
What does Cyber Insurance Cost?
Cyber Insurance can range from as little as $1,000 per year to $15,000 or more per year. However, it depends on the kind of insurance plan you purchase, how big your company is, how many different aspects of cybercrime you want to protect, and how well protected you already are.
The more complex your coverage is, the more expensive it will be. On the other hand, limiting data access to only a small number of people could actually save you money. By limiting data access, you are showing the insurer that although you need their coverage, the likelihood of you being the victim of a cyber attack is small.
Similarly, if you’ve already had many data breaches in the past and have not shown high care for your servers and the private data that they hold, your coverage will be more expensive.
Cyber Insurance policies can also cover:
- Indemnification for legal fees and expenses
- Customer notifications in the event of a breach and many of the expenses triggered by a breach: forensics, legal, notifications, etc.
- Option to monitor the information of anyone impacted for a specified period
- Costs incurred in the recovery of compromised data
- Costs for the repair of damaged computer systems