Cyber Insurance
What is Cyber Insurance?
Cyber Insurance offers financial protection to individuals and organizations against losses resulting from cyber threats such as data breaches, ransomware, identity theft, and business interruption due to network failures. With the rise of digital dependency, this policy is crucial to safeguard against escalating cyber risks.
What it covers
Cyber insurance typically covers a range of costs associated with cyber incidents, including
- First-party costs: These are direct losses to the business, like the cost of recovering compromised data, restoring systems, and business interruption losses.
- Third-party costs: These are costs arising from liabilities to others, such as legal fees from lawsuits related to data breaches, regulatory fines, and costs associated with notifying affected customers.
Why it's important:
As cyber threats become more sophisticated and frequent, businesses face increasing financial risks from cyberattacks. Cyber insurance helps mitigate these risks by providing a financial cushion to recover from incidents and continue operations.
How it works
Concept:
Like other insurance policies, businesses pay a premium to an insurer in exchange for coverage. In the event of a covered cyber incident, the insurer will pay for eligible expenses up to the policy’s limits.
Beyond traditional policies:
What does a cyber security policy cover?
A cyber security policy provides working guidelines for how your online systems and software should be used to minimise cyber security risks. It helps everyone in your business to understand the processes you have in place to protect your company, data and digital assets.
What's Generally NOT Covered
- Intentional or Deliberate Actions
- Negligence and Lack of Precautions
- Prior Breaches or Existing Vulnerabilities
- Bodily Injury and Property Damage
- Loss of Future Profits
- Physical Damage or Equipment Failure
- Cost of Improvements
- Insider Attacks
- Legal Penalties or Fines
