Cyber insurance mainly covers your organization against data breaches involving sensitive information such as your clients' credit card numbers, driver's license numbers, and Social Security numbers. This type of insurance covers a broad scope, from alerting clients when a data breach happens and recovering compromised data to restoring all affected clients' identities and repairing any damaged digital computer systems. Most importantly, cyber insurance service providers cover legal fees and expenses associated with cybercrime and data breaches.
Common Cyber Insurance Categories
Some of the common types of cyber insurance available today include the following.
1. Theft and Fraud
A cyber theft and fraud policy is designed to protect your company against costs arising from the loss or destruction of data caused by theft and fraud. You may also use this type of cyber insurance to cover numerous risks associated with funds transfer, including well-orchestrated cyber theft and different forms of trickery like smishing attacks used by fraudsters to gain a financial advantage over your customers.
2. Business Interruptions
A cyber attack can cripple your operations through vital data manipulation or loss. And even the slightest downtime is likely to compromise service delivery, which results in financial losses. Fortunately, you can use a business interruptions policy to ensure that doesn't happen. The reason is this cyber insurance category covers you from all the financial impacts of business interruptions, including income loss. All you, the policyholder, need to benefit from this policy is proof that cyberattacks halted your business operations.
3. Forensic Work
Data breaches often lead to litigation. And you need computer forensic experts to help you collect and preserve evidence from data-collecting devices like computers, which will later be presented before a court of law. The evidence plays a vital role in solving digital crimes like network breaches and data fraud. A forensic work insurance policy, in this context, helps you cover the costs of a forensic investigation by handling the most relevant legal and technical fees.
4. Extortion
Cyber extortion refers to a situation where a cyber-criminal unlawfully holds your organization's sensitive data, websites, or computer systems. Most hackers then ask for payment to prevent the disclosure of the sensitive data in their possession. Although paying a ransom can seem like a good idea, the best option is letting investigators pursue the perpetrators. And with an extortion cyber insurance policy, you rest assured the investigation costs are covered on your behalf.
Share6 December 2021
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