When a breach occurs, cyber insurancecovers the range of expenses that arise. These include identifying and solving the breach, recovering data, customer notiﬁcations, PR costs, possible credit monitoring expenses, legal expenses, potential ﬁnes from compliance regulators, extortion costs from ransomware, and general business interruption.
WHAT ARE TYPES OF CYBER INSURANCE?
Cyber insurance is recognized by various names or titles. Some of them are as follows: Cyber Liability Insurance, Cybersecurity Insurance, Cyber Security Insurance, Data Breach Insurance, Internet Liability, Electronic Media Liability, Network Security & Information Security Liability Insurance, Data Privacy Insurance, Cyber Risk Insurance, Website Insurance. Cyber policy helps companies weather the storm from many technology-based risks they face.
WHAT IS CYBER LIABILITY INSURANCE?
Cyber Insurance includes the risks associated with a company’s information technology infrastructure and data that may be impacted by a systems failure, ransomware attack, funds transfer loss, or data breach.
HOW DOES CYBER INSURANCE WORK?
If your business falls victim to a data breach or cyber attack, cyber liability insurance can help it survive. While first-party cyber coverages help protect your company from direct losses resulting from cybercrime, 3rd party cyber liability insurance provides coverage for damages or settlements resulting from covered claims made by third parties against your company and the cost of defending against such claims.
WHAT IS CYBER INSURANCE POLICY?
To be fully protected, you need to have comprehensive cyber coverage, also known as stand-alone cyber policy – first-party, third-party, and cyber crime. Since some cyber events can result in large expenses, confirm you have adequate limits for each of three above coverages.
WHAT DOES CYBER LIABILITY INSURANCE COVER?
Cyber coverage protects against the vast array of possible damages, expenses, and lost business that can occur from a cyber attack.
First-party coverage – Intends to cover damages a business suﬀers because of a cyber breach. This can include things like investigative services, business interruption coverage and data recovery.
Third-party coverage – Intends to cover damages if a business’ customers or partners are aﬀected by a cyber attack. This can include legal fees, settlement costs, security failures and media liabilities.
Cyber crime — Intends to cover damage due to any type of illegal activity that occurs using digital means. Examples of cybercrime are extortion/ransomware, phishing, social engineering, and wire transfer fraud.
IS THERE A CYBER INSURANCE COVERAGE CHECKLIST?
Adequate and comprehensive cyber insurance coverage is critical whether you belong to the accounting industry, healthcare, medical industry & mental health industry, e-commerce, education, or tech sector. To ensure your cyber liability policy is comprehensive, here’s a cyber policy checklistto evaluate your cyber insurance for comprehensive coverage.
IS IT WORTH HAVING CYBER INSURANCE?
Cyber threats are exponentially increasing and without a doubt, cyberattacks are the number one threat to the global financial system. Threat of hacking has become a top concern for our nation. It is important for organizations to be prepared for the unexpected and have a cyber response plan that includes cyber liability insurance to make sure that you are doing everything you can to prevent cybercrime from disrupting your business.
WHAT IS BUSINESS INTERRUPTION INSURANCE?
Business interruption insurance protects against the losses and expenses incurred in covered perils, such as damage to your building or office due to storm events. When it comes to your digital assets, a comprehensive cyber policy will cover financial losses resulting from a failure in your security, data breach, and even systems failure, as well as the extra expenses you incur to bring your company back online.
WHAT IS PROFESSIONAL LIABILITY?
Errors and omissions liability insurance, or short for E&O insurance, helps protect you from lawsuits claiming you made a mistake in your professional services. If someone sues your business for making a mistake, your Errors and Omissions insurance policy can help cover your attorney & court fees, your settlements & judgments along with administrative costs. This is a 3rd party claims-made insurance of mistake or misrepresentation while providing a professional service.
IS PROFESSIONAL LIABILITY SAME AS E&O (ERRORS AND OMISSIONS INSURANCE)?
Yes! Depending upon the industry, a professional liability may be titled differently though they all are liability coverages to protect from any errors & omissions as you provide services to your clients. For example, in the healthcare industry, E&O may be known as ‘medical malpractice’ whereas in the tech industry, it’s more commonly recognized as ‘techE&O’ or ‘technology liability’.
WHAT IS TECHNOLOGY LIABILITY INSURANCE?
Technology professional liability insurance, also known as Tech E&O, helps protect professionals from any errors, omissions, mistakes, or negligence in the technology services or products you may offer to your clients. Technology E&O is designed to cover a technology company for any claim of negligence in providing software or services.
DOES TECH E&O COVER CYBER LIABILITY?
A comprehensive techE&O would include cyber liability coverages. While technology E&O covers third-party cyber liability and provides protection if the client sues your company for not being able to prevent a data breach, first-party cyber liability insurance protects your own company’s data and will provide comprehensive cyber coverage.
WHAT IS D&O INSURANCE?
Directors and officers liability insurance provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties as they relate to the company.
IS D&O INSURANCE SAME AS E&O INSURANCE?
No! Directors and officers insurance is often confused with errors & omissions liability. The two are not synonymous; errors & omissions are concerned with performance failures and negligence with respect to your products and services, not the performance and duties of management. Think of directors and officers insurance as a management errors and omissions policy. Also known as management liability insurance, D&O insurance is designed to protect the executive management team of a company from allegations concerning their management decisions.
WHAT IS PERSONAL CYBER COVERAGE?
Personal cyber is a way for individuals and families to take control of their digital lives. Personal cyber insurance would include identity theft, device replacement & loss of funds protection. Personal cyber security for all personal devices should include 24/7 monitoring and support, and specialized assistance and coverage should anything go wrong.