What does Cyber Insurance Cover?
- Cyber insurance generally covers your business' liability for a data breach involving sensitive customer information, such as social security numbers, credit card numbers, account numbers, driver's license numbers, and health records
- Besides legal fees and expenses, cyber insurance typically helps with: notifying customers about a data breach, restoring personal identities of affected customers, recovering compromised data, and repairing damaged computer systems
Benefits of Cybersecurity Insurance Plan:
- Traditional commercial general liability and property insurance policies typically exclude cyber risks from their terms
- Covers costs arising from data destruction and/or theft, extortion demands, hacking, denial of service attacks, crisis management activity related to data breaches, and legal claims for defamation, fraud, and privacy violations
- Few cyber security insurance policies, however, provides businesses with coverage for an area of growing private and public concern: the physical damage and bodily harm that could result from a successful cyber attack against critical infrastructure
How to Approach Cyber Liability:
- First-party insurance typically covers damage to digital assets, business interruptions and, sometimes, reputational harm
- Third-party insurance covers liability and the costs of forensic investigations, customer notification, credit monitoring, public relations, legal defense, compensation, and regulatory fines
- The best approach is to identify and secure the company's digital crown jewels, then quantify and insure the remaining risk
- Investigate what risks are covered by existing insurance packages, because there may be overlaps with a cyber insurance policy
- Cybersecurity insurance doesn't do a good job of covering intellectual property theft or the reputational damage and business downturn that can be caused by a security breach