What is Cyber Insurance?
Cyber Insurance is designed to support your business if computer networks are breached, causing information to be stolen or ransomed, business operations to be interrupted, and computer systems to be corrupted. While Cyber Insurance doesn’t protect your business from cyber crime, it does keep you on stable financial ground should an event occur. Having Cyber protection means you can off-set the costs of recovery should a breach occur, giving you one less thing to worry about when working to resolve the situation. Some common expenses covered by cyber insurance include:
This could include monetary losses from shutting down operations, cost of data recovery, or the cost of public relations efforts to repair a businesses reputation.
If sensitive client data is breached, lawsuits are a major concern and are often lobbied by affected customers. This could also include cyber extortion, such as that from ransomware.
An investigation will likely need to take place to determine what happened, how it happened, the ramifications, what data was breached, how to prevent the breach from happening again, etc. This often means engaging a third-party security company, and sometimes law enforcement.
When a security interruption occurs, notifying affected clients or customers is of utmost importance. This may also include credit monitoring for affected parties.