Cybersecurity insurance is a new, emerging industry. Companies that purchase cybersecurity insurance today are considered early adopters.
Cyber insurance policies help cover the financial losses that result from cyber events and incidents. In addition, cyber-risk coverage helps with the costs associated with remediation. It also includes payments for the legal assistance, investigators, crisis communicators, and customer credits or refunds.
More or less, it insures potential losses due to cyber attacks.
Do I need cyber insurance?
Any business that creates, stores, and manages electronic data online can benefit from cyber insurance. Some examples include: customer contracts or credit card numbers.
That means, using Google Drive, online servers, or performing transactional data between businesses can be helped/benefitted from cyber insurance.
What does it cover?
• meeting extortion demands from a ransomware attack
• notifying customers when a security breach has occurred
• paying legal fees levied as a result of privacy violations
• hiring experts to recover compromised data
• restoring identities of customers whose personal identifiable information was compromised
• recovering data that has been altered or stolen
• repairing or replacing damaged or compromised computers systems
What it doesn’t cover?
• cyber events initiated and caused by employees or insiders
• failure to correct a known vulnerability, such as a company that knows that a vulnerability exists, fails to address it and is then compromised from that vulnerability
• the cost to improve technology systems, including security hardening in systems or applications